TAJBank Limited has announced that its latest N20 billion Mudarabah Sukuk bond offer was oversubscribed by 185.15%, drawing in N57.03 billion from investors.
According to a statement the bank shared with Naijaonpoint on Friday, figures released by investment market authorities showed that the debt instrument, with a 20.5% annual profit rate, far exceeded its target.
The offer forms the second tranche of the bank’s N100 billion Sukuk bond programme.
“TAJBank Limited, the fastest growing non-interest bank in Nigeria, has again demonstrated its frontline visibility in Nigeria’s non-interest banking investment market with its latest N20 billion Mudarabah Sukuk bond offer recording 185.15% oversubscription rate,” the statement read.
In the statement, TAJBank’s Founder and Managing Director, Hamid Joda, said the result was significant in light of current economic pressures on households and businesses.
“Let me say that this outstanding performance of the Sukuk bond is a clear demonstration that the bank is enjoying growing investor confidence,” Joda said.
He added that the outcome reflects “the quality of innovative products and services, value addition TAJBank is delivering in the non-interest banking subsector of the banking system.”
Joda also credited the bank’s management, regulators and investors for their role in the success of the issuance.
He assured stakeholders that the bank would continue to protect their interests.
In the statement, TAJBank’s Co-Founder and Executive Director, Sherif Idi, said the subscription level indicates that investors continue to place trust in the lender.
“This investment feat is a clear demonstration that investors’ trust in TAJBank and we will continue to do our best to surpass their expectations through world-class products and services,” he said.
The statement also noted that analysts said that the success of the offer highlights sustained demand for ethical finance products in Nigeria, especially as investors look for alternatives in a market where yields remain high.
They add that more businesses and customers are likely to consider TAJBank for investment and banking services following the strong performance of the Sukuk.
Since its entry into Nigeria’s non-interest banking space five years ago, TAJBank has pursued expansion through customer-focused products in line with its vision to become one of the country’s top 20 banks by 2029.
The bank has also received recognition in the Islamic finance industry for its earlier issuances. In 2023, it won the Global Islamic Finance Award for “Best Sukuk Deal of the Year,” having previously received BusinessDay’s “Islamic Bank of the Year” awards in 2021, 2022 and 2023. In 2020, it was also named “Bank of the Year” by Leadership Newspapers.
This new N20 billion Sukuk bond comes about two years after the issuance of TAJBank’s first-ever N10 billion Sukuk bond in 2023. The initial bond, listed on the Nigerian Exchange, was the first of its kind in Nigeria’s financial history.
This new N20 billion Sukuk bond comes about two years after the issuance of TAJBank’s first-ever N10 billion Sukuk bond in 2023. The initial bond, listed on the Nigerian Exchange, was the first of its kind in Nigeria’s financial history.
It was oversubscribed by 115%, reflecting strong investor interest and the bank’s ability to meet its commitment to ethical financial practices.
The launch of this second tranche affirms TAJBank’s ongoing strategy to expand its Sukuk programme, aimed at providing ethical investment opportunities to the public.
Fitch Ratings earlier noted that Nigeria’s Islamic finance industry is likely to expand from the second half of 2025 through 2026 on the back of increasing sovereign sukuk issuances and Islamic banking assets, driven by new paid-in capital requirements and regulatory moves to develop the industry.
According to Fitch, non-interest banks’ assets recorded a growth of 110% year-o-year as of end-2024, driven by a significant increase from deposits and loans, each more than doubling in value.