TAJBank Signs Agreement For N20Bn Mudarabah Sukuk Bond Issuance
TAJBank, Nigeria’s leading non-interest lender, on Tuesday signed the completion agreement for the N20 billion second tranche of its N100 billion Mudarabah Sukuk bond programme.
The latest investment initiative of the multiple award-winning non-interest lender, which is coming after about two years following the issuance of the first-ever N10 billion Sukuk bond on the Nigerian Exchange in 2023, presents another opportunity for individuals and corporate investors to stake their funds in an ethical instrument with a competitive 20.5% per annum return.
Specifically, the new Mudarabah Sukuk bond of TAJBank, which has secured all necessary regulatory approvals, is designed to offer a stable and ethical investment option to 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.
According to the management of the bank, the new Mudarabah Sukuk bond is open to all investors, both individuals and corporates and the goal is to provide a reliable source of extra income, accessible from the comfort of your home.
Briefing journalists on the importance of the agreement signing ceremony, the Chairman of TAJBank, Alhaji Tanko Isiaku Gwamna, said: “The offer of the N20bn Mudarabah Sukuk to the market is to avail members of the public an investment opportunity that aligns with ethical financial principles.
“As the Board and management of our bank demonstrated in the maiden issuance of the bank’s Sukuk, the offer of the new N20bn Sukuk bond on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model”, the Chairman assured.
He further advised interested investors to contact their financial advisors or visit www.tajbank.com for more information on the Sukuk and the listing processes.
Commenting on the historic pact between his company and TAJBank on the Sukuk bond issuance, CEO of the lead issuing house – AVA Capital Ltd, Mr. Kayode Fadahunsi, said: “We are very excited to be part of TAJBank’s success story in the non-interest banking industry, which is being consolidated upon with the planned issuance of its N20bn Mudarah Sukuk in the NGX as part of its N100 billion programme.
“I want to assure investors that as was the case in the Bank’s maiden Sukuk bond listing on the Exchange, the bank’s management will surpass their expectations in terms of return on their investment and other benefits in this second outing”, Fadahunsi added.
Investment analysts strongly believe that the N20 billion second tranche Mudarabah Sukuk bond issuance with a 20.5% annual return is potentially among the best offer to investors seeking to diversify their investment portfolios and good returns on a sustainable basis.
It would be recalled that TAJBank’s Founder/Managing Director, Mr. Hamid Joda had, during the beating of the Gong on the listing of the Bank’s maiden N10 billion Sukuk bond on the NGX in February 2023, which was over-subscribed by over 115%, assured investors of good returns on their investments and the Board has been fulfilling the promise since then.
