TAJBank Set to Launch N20bn Mudarabah Sukuk, Eyes N100bn Issuance

By Abdullahi Yusuf

TAJBank, Nigeria’s leading non-interest bank, is set to launch a N20 billion Mudarabah Sukuk bond as part of its N100 billion Sukuk programme, aimed at strengthening its Additional Tier 1 capital and driving business expansion.

The latest issuance follows the bank’s historic N10 billion Sukuk bond in 2023, which was oversubscribed by over 115%. The new investment initiative offers individuals and institutions an ethical financial instrument with a competitive annual return of 20.5%, reinforcing TAJBank’s commitment to providing innovative financial solutions.

Designed as a profit-sharing investment, the Mudarabah Sukuk allows investors to participate in the bank’s ventures while promoting financial inclusion in Nigeria. The bank’s management confirmed that regulatory assessments and approvals are in the final stages, ensuring accessibility for both individual and corporate investors.

Speaking on the Sukuk issuance during a virtual media session, TAJBank’s Founder/CEO, Mr. Hamid Joda, stated:

“We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles. Listing on the Nigerian Exchange (NGX) will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model.”

The bank encouraged interested investors to consult financial advisors or visit its website for more details on the Sukuk and the listing process.

At the 2023 listing of TAJBank’s maiden N10 billion Sukuk bond on the NGX, Joda had assured investors of strong returns, emphasizing the bank’s commitment to surpassing expectations. Investment analysts also highlight the new Sukuk’s attractiveness, with its 20.5% annual return offering a secure and transparent avenue for wealth growth while adhering to ethical finance principles.

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