This issuance is part of TAJBank’s broader N100 billion Sukuk programme, designed to drive business expansion and enhance the bank’s financial resilience. The move follows the successful issuance of the bank’s first-ever N10 billion Sukuk bond on the Nigerian Exchange (NGX) in 2023, which marked a significant milestone in Nigeria’s Islamic finance landscape.
A Competitive and Ethical Investment Opportunity
The proposed Mudarabah Sukuk bond offers investors a competitive annual return of 20.5%, providing a stable and ethical investment option. The bond is structured to allow investors to participate in the bank’s profit-sharing ventures, aligning with TAJBank’s commitment to innovative financial solutions and promoting financial inclusion in Nigeria.
“Specifically, the new Mudarabah Sukuk bond is designed to offer a stable and ethical investment option. It allows investors to participate in the bank’s profit-sharing ventures and underscores TAJBank’s commitment to expanding access to innovative financial solutions and promoting financial inclusion in the country,” Joda explained.
Open to All Investors
The Mudarabah Sukuk bond is open to both individual and corporate investors, offering a reliable source of additional income that is easily accessible. Joda emphasized the bank’s goal of providing a compelling investment opportunity that aligns with ethical financial principles.
“We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles. This listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model,” he added.
Interested investors are encouraged to contact their financial advisors or visit TAJBank’s website for more information on the Sukuk and the listing process.
A Milestone in Islamic Finance
Last month, the Nigerian Exchange Limited (NGX) admitted TAJBank’s N10 billion Sukuk Mudarabah on its platform, commemorating the event with a closing gong ceremony. The N10 billion issuance, which carries a 15% annual return, represents an innovative blend of equity and debt and serves as Additional Tier 1 capital. It is the first of its kind in Nigeria, marking a major milestone in the country’s Islamic finance sector.
Speaking at the ceremony, Mr. Jude Chiemeka, Divisional Head of Capital Markets at NGX, commended TAJBank’s leadership and the parties involved in the transaction, including Greenwich Merchant Bank (Lead Issuing House), 117 Capital & Buraq Capital (Joint Sharia Advisers), and United Capital (Brokers).
Pioneering Non-Interest Banking
Operating under Islamic banking principles, TAJBank has positioned itself as a pioneer in Nigeria’s non-interest banking sector. The N10 billion Sukuk Mudarabah was raised under the bank’s N100 billion Sukuk programme, aimed at strengthening its capital adequacy ratio and supporting future growth.
The upcoming N20 billion Sukuk issuance further solidifies TAJBank’s commitment to driving financial inclusion and providing ethical investment opportunities in Nigeria’s evolving financial landscape.