The BAS Ethical Investment Note Is Now on AssetBase: Here's What You Need to Know
There is a question that sits at the back of many investors' minds, particularly those for whom faith shapes how they engage with money: where exactly is my capital going, and what is it being used to do?
For a long time, the answer to that question, at least within the Nigerian investment market, was either unsatisfying or unavailable. Ethical and Shari'ah-compliant investment products existed, but they were often inaccessible, illiquid, or simply too opaque to inspire real confidence. You either compromised your values or accepted lower returns as the price of principle.
The BAS Financial Services Ethical Investment Note is now live on AssetBase, a Shari'ah-compliant, SEC-regulated structured note offering a 27% gross target profit rate per annum over 365 days. AssetBase investors have seen ethical listings before, and the appetite has always been there. What this one brings is a more seasoned issuer, a formal credit rating, and a yield that does not ask you to compromise on returns to stay compliant.
This article explains what the product is, who is behind it, how the money works, and what you should consider before investing.
What Is the BAS Ethical Investment Note?
The BAS Financial Services Ethical Investment Note is a structured non-interest investment instrument. It is not a bond in the conventional sense. There is no interest payment. Instead, investors participate in a profit-sharing arrangement tied to the performance of an ethically screened portfolio managed by BAS Financial Services Limited.
The Series 1 issuance is part of a ₦5 billion programme. AssetBase has secured an allocation of ₦200 million, structured into 2,000 units at ₦100,000 per unit. The minimum subscription is one unit.
The note runs for 365 days from the offer close date. At maturity, investors receive their principal plus a target profit of 27% gross per annum, which works out to ₦124,300 per unit invested, before applicable taxes and fees. Principal repayment is via a bullet payment at maturity, meaning there are no interim capital payments. The offer opens on June 12, 2026.
This is not a savings product. It is a fixed-income investment with a defined tenor, a target return, and the risks that come with any capital market instrument. Those risks are outlined below.
Who Is BAS Financial Services Limited?
BAS Financial Services Limited is the ethical and Islamic finance arm of BAS Group, a diversified Nigerian financial services conglomerate with regulated entities spanning investment banking, wealth management, insurance, healthcare, microfinance, and telecoms. The broader group operates under licences from the SEC, CBN, NAICOM, NHIA, and NCC.
BAS Financial Services itself was incorporated in 2023, originally as ALLY Microsecurities Limited and rebranded in May 2024, and received its Fund/Portfolio Manager licence from the Securities and Exchange Commission in August 2025 under the Investments and Securities Act 2025 (Ref: SEC/REMI/REG/3069/2025). It operates from Lagos and Abuja, with a focus on Shari'ah-compliant fund management, ethical investment advisory, and treasury and liquidity management for institutional clients.
The growth numbers are difficult to ignore. In a six-month operating period in 2023, the company recorded ₦179 million in revenue. By the nine-month period ending September 2025, that figure had grown to over ₦3.4 billion. Assets Under Management climbed from ₦521 million to over ₦40 billion across structured investments, corporate mandates, and proprietary portfolios. Audited financials for FY 2025 show profit after tax of ₦780 million, up 112% from the prior year, and total assets of ₦10.1 billion, a 324% year-on-year increase.
The company's net equity stands at ₦1.35 billion, built on ₦150 million in paid-up share capital and ₦1.2 billion in retained earnings accumulated since inception. As of September 2025, liquid assets of ₦10.1 billion fully covered customer fund liabilities, with a net liquidity surplus of ₦1.37 billion.
Leadership includes Managing Director Zakari Aliyu Ahmadu and Terfa Udendeh, Group Head of Finance and Investments, with a management team drawn from Lotus Capital, Stanbic IBTC, GTBank, and BAS Capital. SEC-registered sponsored individuals hold professional designations including CIS, ACIB, MCIB, CIIA, and IoD.
The Credit Rating
In November 2025, DataPro Limited assigned BAS Financial Services a long-term rating of BBB(IM), investment grade, with a stable outlook and an upward trend.
In DataPro's framework, BBB(IM) means the issuer demonstrates fair financial strength, operating performance, and business profile, with slight risk. The rating's positive factors include good revenue potential, a good liquidity profile, and good capitalisation. The primary negative factor noted is macroeconomic constraints, the same headwinds facing every institution operating in Nigeria's current environment. The rating is valid until November 2026.
An investment-grade rating from a recognised Nigerian credit rating agency is not a guarantee of performance. But it is a meaningful signal. It means an independent institution has reviewed the issuer's financials, governance structure, and risk profile and concluded that the capacity to meet obligations is adequate, with manageable downside.
How the Money Is Deployed
This is where the ethical architecture of the product becomes concrete. Proceeds from the product's ethical architecture are allocated to what BAS Financial Services calls its Ethical Investment Pool, which is governed by a documented Ethical Investment Policy Statement (EIPS). All assets within the pool must pass both a business screen and a financial screen before inclusion.
The business screen excludes companies in conventional banking and finance, alcohol, tobacco, pork, gambling, weapons, and entertainment that does not meet Shari'ah standards. The financial screen applies quantitative limits: debt-to-asset ratio must be no more than 5%, cash and interest-bearing securities relative to market capitalization must not exceed 30%, non-compliant income must be below 2%, and net borrowing must be at or near zero.
Within those constraints, the pool is allocated approximately as follows:
Sukuk (~40%) Asset-backed instruments structured around Musharaka or Mudaraba principles, where risk and return are tied to underlying asset performance. Commodity Murabaha-based sukuk and instruments issued by banks or financial institutions are excluded.
Direct Equities (~25%) Listed equities that pass the dual screening criteria described above.
Ethical Collective Investment Schemes (~15%) Shari'ah-compliant funds and ETFs.
Murabaha and Trade Receivables (~15%) Short-tenor, trade-backed exposures structured on cost-plus financing principles.
Liquidity Buffer (~5%) Non-interest deposits and Shari'ah-compliant cash management instruments held for operational flexibility.
All allocations are subject to ongoing monitoring, purification protocols for any inadvertent noncompliance, and oversight by a dedicated Shari'ah Advisory Board.
Why 27% Is Worth Paying Attention To
The current Nigerian fixed income market offers a reference range of 22–24% on Nigerian Treasury Bills and 16–19% on Tier-1 commercial paper. The BAS Ethical Note's 27% gross target profit rate sits above both benchmarks.
That premium reflects a combination of factors: the issuer's size relative to Tier-1 issuers, the tenor and structure of the instrument, and the nature of the underlying portfolio. It also means investors are being compensated meaningfully for the risks they are taking on, which is the correct relationship between risk and return.
For investors who have historically accepted lower yields on ethical products as a necessary trade-off, the BAS Note makes a different argument: that principled investing and competitive returns are not mutually exclusive.
Who Should Consider This Investment?
The BAS Ethical Investment Note is suitable for the who:
- Want exposure to SEC-regulated, rated Nigerian fixed income
- Are seeking Shari'ah-compliant investment vehicles for ethical or religious reasons
- Are comfortable with a 365-day lock-in period (secondary market liquidity is available post-allotment on AssetBase, but is not guaranteed)
- Understand that the 27% is a target profit rate, not a contractually guaranteed interest payment, and that returns are subject to the performance of the underlying ethical portfolio
- Have a minimum of ₦100,000 to invest
It is worth noting that the note is open to all investors, not only those of the Muslim faith. Ethical screening, disciplined portfolio governance, and avoidance of leveraged or speculative assets are considerations that resonate well beyond any single community.
What Are the Risks?
No investment document worth reading omits this section, and neither should an article about one.
Macroeconomic risk is real. The naira has traded between ₦1,446 and ₦1,465 to the dollar as of late 2025, and inflation at 16% means that real returns, while still positive at 27% gross, require attention. The Monetary Policy Rate at 27% also creates a competitive benchmark that the note must clear.
Credit risk exists wherever there is counterparty exposure. The ethical screening criteria limit concentration in over-leveraged issuers, but they do not eliminate the possibility of default within the underlying pool.
Liquidity risk is relevant for investors who may need access to funds before maturity. Secondary market trading on AssetBase provides an exit mechanism, but liquidity on secondary markets is never guaranteed.
Regulatory risk is present but mitigated by the SEC licence, ongoing compliance obligations, and the capital adequacy framework DataPro has assessed as adequate.
Target return risk applies specifically to non-interest instruments. The 27% is a target, not a promise. If underlying portfolio performance falls short, actual returns may differ.
The Structure Around the Note
Security Trustee: Plethoria Trustees Settlement Bank: Wema Bank Trust Account: Plethoria/BAS Trust Account (0125587051) Independent Auditors: Adedamola Olaleye & Co (Chartered Accountants) Principal Banker: Alternative Bank
The existence of a named trustee, a designated trust account, and an independent auditor are structural safeguards. Not guarantees, but meaningful signals of institutional seriousness.
Key Investment Details
- Asset class: Fixed Income (Non-Interest / Shari'ah-Compliant)
- Issuer: BAS Financial Services Limited
- Programme size: ₦5 billion
- AssetBase allocation: ₦200 million
- Minimum subscription: ₦100,000 (1 unit)
- Target profit rate: 27% gross per annum
- Offer opens: 12th June 2026
- Maturity: 365 days from offer close
- Maturity value per unit: ₦124,300
- Principal repayment: Bullet at maturity
- Secondary liquidity: Available on AssetBase post-allotment
How to Invest
- Log in to your AssetBase account, or create one if you are new.
- Navigate to the BAS Financial Services Ethical Investment Note.
- Review the full investment details and documentation on file.
- Make your investment.
For questions or assistance, reach the AssetBase support team at hello@assetbase.capital or join the community on Telegram.
This note attracts a 10% government withholding tax (WHT) and applicable processing fees, deducted from profit before payout, not from capital.
