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Nigeria's Moove raises $30 million via debut sukuk

Startup Moove, which was founded in Nigeria and provides revenue-based vehicle financing, said on Thursday it is raising $30 million in a private placement debut issuance of Islamic bonds.

Franklin Templeton's Middle East unit arranged the sukuk sale that was structured as a sukuk al-istisna, a sharia-compliant debt format.

The company said it aims for at least 60% of the vehicles it finances to be electric. Moove launched in India this year, as well as London.

"Moove will use the funds to scale to 2,000 EVs in the UAE over the coming year," Ladi Delano, the company's co-founder and co-chief executive, said in a statement.

"Moove estimates that this fleet of EVs will contribute to a reduction of over 5,000 metric tonnes of carbon dioxide emissions per year to help cities like Dubai meet their ambitious Net Zero targets."

Dino Kronfol, Franklin Templeton's chief investment officer of global sukuk and MENA fixed income, said the transaction supports "the development of mobility and fintech ecosystems in the UAE initially, followed by more markets in the future."

"The transaction also further validates the opportunity we have been arguing exists in private credit across the region, combining attractive yields with security and credit control," he added in the statement.

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