TAJBank eyes N20bn Mudarabah sukuk bond to boost capital

TAJBank has unveiled plans to issue a N20 billion Mudarabah Sukuk bond as part of its strategic initiative to bolster its capital base.

This move aligns with the bank’s aggressive expansion drive, aimed at enhancing its business operations and further solidifying its position in the market.

The issuance is part of TAJBank’s broader N100 billion Sukuk program, as announced by the leading non-interest bank in Nigeria over the weekend.

This new investment initiative follows the successful debut N10 billion Sukuk bond issued on the Nigerian Exchange in 2023, about two years ago.

It offers individuals and institutions a unique chance to invest in an ethical financial instrument, providing a competitive return of 20.5% per annum.

The new Mudarabah Sukuk bond is specifically designed to provide a stable and ethical investment opportunity, enabling investors to participate in the bank’s profit-sharing ventures.

This move highlights TAJBank’s dedication to broadening access to innovative financial solutions and advancing financial inclusion across Nigeria.

The bank’s management has stated that the terms and conditions of the Mudarabah Sukuk issuance are currently undergoing final regulatory evaluation and approval processes.

Read also: TAJBank to issue N20bn Mudarabah sukuk bond

However, the sukuk is open to all investors, including both individuals and corporates, with the aim of providing a reliable source of additional income for them.

“We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles,” Hamid Joda, founder/CEO of TAJBank said while commenting on the current moves.

“This listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model”, the banker told journalists.

The bank’s management advised interested investors to contact their financial advisors or visit www.tajbank.com for more information on the sukuk and the listing process.

BusinessDay recalls that during the listing of TAJBank’s inaugural N10 billion sukuk bond on the NGX in February 2023, which attracted a 115 percent subscription, Hamid Joda assured investors that the bank’s board and management would ensure strong returns on their investments.

He said: “As TAJBank gets the NGX’s endorsement today on its fundraising for operations, I want to assure all investors in the maiden Sukuk bond offer by our bank that the board and management will surpass their expectations in terms of return on their investment and other benefits.”

Investment analysts firmly believe that the N20 billion Mudarabah Sukuk offers investors a secure and transparent avenue to grow their wealth while adhering to ethical guidelines.

They point out that the 20.5 percent annual return makes it an attractive option for those seeking to diversify their investment portfolios and generate passive income.