TAJBank set to issue N20bn Mudarabah Sukuk

TAJBank, a leading non-interest bank in Nigeria, is on the verge of raising the sum of N20 billion Mudarabah Sukuk bond to beef up its Additional Tier 1 capital aimed at supporting its business expansion drive. The proposed issuance is part of its N100 billion Sukuk programme. The new investment initiative, which is coming after […]

TAJBank, a leading non-interest bank in Nigeria, is on the verge of raising the sum of N20 billion Mudarabah Sukuk bond to beef up its Additional Tier 1 capital aimed at supporting its business expansion drive.

The proposed issuance is part of its N100 billion Sukuk programme.

The new investment initiative, 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 a unique opportunity for individuals and institutions to invest in an ethical instrument with a competitive 20.5% per annum return.

The Mudarabah is an Islamic financial model under the non-interest financial system where one party provides the capital while the other provides labour and both share in the profits. It is also referred to as trustee finance.

The bank, in a statement, explained that the new Mudarabah Sukuk bond, is designed to offer a stable and ethical investment option which allows investors to participate in its profit-sharing ventures.

According to TAJBank, this underscores its commitment to expanding access to innovative financial solutions and promoting financial inclusion in the country.

According to the management of the bank, the Mudarabah Sukuk issuance terms and conditions, now undergoing final regulatory assessment and approval processes, 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.

Speaking on the proposed issuance, the founder/CEO of TAJBank, Mr Hamid Joda, said: “We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles.

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