A non-interest banking services provider, TAJBank Limited establishes a branch in Apapa and becomes the first corporate entity to list a sukuk bond on the NGX.

The founder and managing director of TAJBank, Mr. Hamid Joda, stated during the opening ceremony that Apapa targeted for the commencement of the bank’s branch network expansion in the South West because of the strategic position in the nation’s business operations and the need to offer customers real-time, technology-powered world class services.

He said, “We are very excited to begin the deepening of our non-interest and customer-focused products and services in Apapa, Lagos as we commence the expansion of our services across the geo-political zones of the country.

“This is a mega branch based on the investments in technologies and solutions and the quality of human resource we are putting in place here and we intend to put in other branches we are opening very soon because we intend to offer what other banks are not offering in terms of value-addition to our customers.”

In his remarks, the bank’s Executive Director, Mr Sherif Idi, noted that the bank’s excellent performance had been recognised in Nigeria and other countries with the bank clinching various awards and securing acceptance by global rating agencies.

TAJBank becomes First Corporate to list Sukuk Bond on NGX

The bank has become the first corporate entity to list Sukuk bond on the trading floor of the Nigerian Exchange Limited (NGX) as it put N10 billion for offer on the platform on Tuesday. According to a press release on Tuesday, the bank listed N10bn Mudarabah Sukuk issuance after it successfully raised over N11.4bn under its N100bn Sukuk Issuance Programme.

Similarly, the first of its kind in Nigeria is an additional Tier 1 Capital Mudarabah Sukuk with loss-absorbency features designed to help TAJ Bank strengthen its capital adequacy ratio and general corporate business activities.

The issuance received interest from both retail and institutional investors, resulting in a subscription of 113.6. The oversubscription of this issuance demonstrates that the investment culture in the country is still vibrant and there is sustained confidence in Nigeria’s path to economic recovery and stability.

In his remarks, the Divisional Head, Capital Markets, NGX, Mr Jude Chiemeka commended the efforts of TajBank’s leadership and the parties to the issue — Greenwich Merchant Bank, Lead Issuing House; 117 Capital & Buraq Capital, Joint Sharia Advisers; and United Capital, Brokers —on the transaction.

He said, “NGX will continue to support issuers by providing a platform of choice for capital raising and linking them with a diverse pool of investors. The Exchange is also committed to the development of Islamic financing in the Nigerian capital market and continues to implement initiatives to deepen its offerings.”

While speaking at the event The Chief Executive Officer, TajBank, Hamid Joda reiterated the strategic importance of Islamic financing and how it can drive national development.

Also, he thanked NGX for its support and pledged to continue to collaborate with the Exchange for the development of Islamic finance in the country.

Joda indicated that the Sukuk bond issuance by TAJ Bank is a very important milestone in the history of Nigeria’s capital market.

“I believe that after this issuance, we will see a number of companies in the Nigerian market coming out to issue Sukuk bonds and that will lead to the deepening of the non-interest market and eventually economic development of Nigeria,” he said.

TAJBank is Nigeria’s most innovative Non-Interest Bank.
It is the second non-interest bank established in Nigeria and is headquartered in Abuja, the capital city of the country. Recently, the Bank raised N10 billion through a Sukuk Mudarabah program that combines equity and debt components. The TajBank N100 billion Sukuk Mudarabah Program is raising the N10 billion Sukuk Mudarabah Issuance, the first of its kind in Nigeria and additional Tier 1 Capital with Loss-Absorbency. This program aims to increase the bank’s capital adequacy ratio.