TAJBank to raise N20 billion Sukuk bond to strengthen capital base

The announcement was made by the bank’s Founder and Chief Executive Officer, Mr. Hamid Joda, in a statement on Monday.

According to Joda, the issuance is part of TAJBank’s N100 billion Sukuk programme designed to drive the bank’s business expansion.

He noted that this new initiative follows the successful issuance of the first-ever N10 billion Sukuk bond on the Nigerian Exchange in 2023.

The proposed bond offers a unique opportunity for investors, providing a competitive 20.5% annual return.

“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 said.

The Mudarabah Sukuk bond is open to both individual and corporate investors. Joda emphasized the bank’s goal to provide a reliable source of extra income that can be easily accessed.

“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.

Joda encouraged interested investors to contact their financial advisors or visit the bank’s website for more information on the Sukuk and the listing process.

In recent developments, the Nigerian Exchange Limited (NGX) admitted TAJBank’s N10 billion Sukuk Mudarabah on its platform last month, commemorating the event with a closing gong ceremony.

Operating under Islamic banking principles, TAJBank has positioned itself as a pioneer in the 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.