TAJBank secures $12.9m Sukuk bond approval

TAJBank, Nigeria’s leading non-interest lender, has secured regulatory approval for a N20 billion ($12.9 million) Mudarabah Sukuk bond, the second tranche of its N100 billion Sukuk programme.

The bond, offering a 20.5% annual return, aims to provide investors with an ethical, profit-sharing investment option while advancing financial inclusion.

This issuance follows TAJBank’s groundbreaking N10 billion Sukuk bond in 2023, the first of its kind listed on the Nigerian Exchange. That initial offering was oversubscribed by 115%, signaling robust investor confidence in the bank’s commitment to non-interest banking principles. The new N20 billion bond builds on this success, offering individuals and corporate investors a chance to engage in ethical financial ventures.

ALSO READ: KILIFI LPG FACILITY RECEIVES FIRST SHIPMENT AMID SAFETY CONCERNS

TAJBank’s Chairman, Alhaji Tanko Isiaku Gwamna, emphasized the bond’s alignment with ethical finance, stating it allows investors to benefit from the bank’s profit-sharing model. Founder and Managing Director Hamid Joda, reflecting on the 2023 bond’s success, reaffirmed the bank’s dedication to delivering strong returns.

Partnering with AVA Capital Ltd as the lead issuing house, TAJBank’s latest Sukuk is expected to attract investors seeking stable yields in a challenging economic climate. AVA Capital’s CEO, Kayode Fadahunsi, expressed confidence in the bond’s potential, citing TAJBank’s strong track record in non-interest banking.