Purple Urban Limited, a member of the Purple Group, has concluded its Sukuk Bond privately issued to the investing public raising N5 billion.
The bond issue, which opened and closed recently, was 100 per cent subscribed, it said in a statement.
With a maturity date of 1st September 2026, the Sukuk Bonds were issued to finance the construction of 94 out of 112 housing units in an urban residential development of mainly 4-bedroom semi-detached maisonettes and penthouses, among others in Lagos, Nigeria.
The lead arranger of the bond issue was CardinalStone Partners Limited, while Marble Capital Limited acted as a Joint Shariah Adviser alongside One17 Capital Limited.
The Purple Urban Sukuk follows the Sukuk Al-Ijarah concept. The Sukuk Al-Ijarah (Lease) is a lease agreement in which the owner of a property transfers the legal right to use and derive profit from the property to another person, for an agreed period, at an agreed consideration.
Commenting, the Chief Executive Officer, Purple Group, Mr. Olaide Agboola, said: “The Sukuk gave an avenue for alternative funding, which we decided to explore.
“We found that the asset-backed nature and the flexibility of the Sukuk structure especially for real estate gave us the impetus to issue a Sukuk that would ensure investor comfort and confidence.
“As at today, it was 100% subscribed, and the order book met our expectations,” Agboola said. He further stated that, “Considering the current economic climate, we think the Sukuk performed extremely well, as it gave investors an avenue to release funds for a world-class real estate development where the instrument can be properly secured,” he said.