Greenwich Merchant Bank assists TAJ Bank to raise N11.4bn Mudarabah Sukuk series 1

Greenwich Merchant Bank Limited, acting as the lead issuing house in the recently concluded Sukuk Issuance, has successfully supported Taj Bank Limited to raise over N11.4 billion via a Mudarabah Sukuk Issuance, under an N100 Billion Sukuk Issuance Programme.

This program, 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& path to economic recovery and stability.

“Our participation as the Lead Issuing House in this innovative transaction – the first of its kind in Nigeria – is proof of our commitment to catalyzing positive economic outcomes via capital provision to Corporates and the Federal Government of Nigeria. We are delighted to have supported TAJBank in this landmark transaction,” Bayo Rotimi, managing director of Greenwich Merchant Bank Limited said.

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In the last two years, Greenwich Merchant Bank enabled the Federal Government of Nigeria to raise a total sum of N380 Billion – for infrastructure projects – via the FGN Sukuk IV and V Issuances respectively.

Additionally, in 2022, Greenwich Merchant Bank also helped Family Homes to raise N20 Billion under its Series II Ijarah Sukuk – the second-ever certified corporate Bond in Nigeria.

Commonly referred to as Islamic Bonds, Sukuk – a non-interest-bearing bond- has helped government diversify its sources of funding while offering ethical investors an opportunity to invest in government-issued securities. The instrument has not only helped government achieve a higher level of financial inclusion, but has served as a reference for pricing sukuk issued by other bodies, especially the private sector.

Classified as liquid asset by the Central Bank of Nigeria, and listed and traded on the Nigerian Stock Exchange and the Financial Market Dealers Quotation OTC Securities Exchange, the Sukuk provides opportunities for holders to buy or sell on any business day.

Through its bespoke financial solutions, Greenwich Merchant Bank said they remain focused on supporting the Federal and States Governments as well as corporate organizations to achieve the capital project financing required to spur economic growth.