The Osun State government in southwestern Nigeria is planning to raise a sukuk bond worth 10 billion Nigerian nairas (some $62 million) from the capital market to fund infrastructural development. The state is awaiting final approval from the Security and Exchange Commission (SEC). The seven-year bond would be issued through a book-building process, which would earn returns for sukuk holders through a semi-annually paid rent structure called the Ijara. A local credit ratings agency, Agusto and Co, has given the note – to be listed on the Nigerian Stock Exchange – an A rating. The move as part of a 60 billion naira debt-raising program by Osun State, which started last year. The funds will be used to finance construction of education projects, among other development initiatives.