TAJBank, Nigeria’s non-interest financial institution, has said that it planned to issue a N20bn Mudarabah Sukuk bond as part of its broader strategy to strengthen its Additional Tier 1 capital and support business expansion.
This was disclosed by the bank’s Founder and Chief Executive Officer, Mr. Hamid Joda, in a statement on Monday.
The issuance is a key component of TAJBank’s N100bn Sukuk programme, aimed at driving sustainable business growth and increasing access to ethical investment opportunities in Nigeria.
This follows the bank’s successful issuance of the first-ever N10bn Sukuk bond on the Nigerian Exchange (NGX) in 2023, which garnered significant investor interest.
Joda said the proposed bond offers an attractive 20.5 per cent annual return, making it a competitive investment option in the Nigerian financial market.
According to Joda, the Mudarabah Sukuk is structured to provide investors with a stable and ethical financial instrument that aligns with the principles of profit-sharing, reinforcing TAJBank’s commitment to innovative financial solutions and financial inclusion.
“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.
He noted that the investment opportunity is open to both individual and corporate investors, offering them a reliable means of generating additional income while supporting the growth of a pioneering non-interest financial institution.
Joda added that the Sukuk’s listing on the Nigerian Exchange will further enhance accessibility and liquidity for investors, providing a regulated platform for trading and value appreciation.
Joda emphasized the bank’s dedication to fostering a more inclusive financial ecosystem, particularly for investors seeking ethical and Shariah-compliant investment options.
“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.
Source: The Whistler Newspaper
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