Nigeria’s non-interest {bank}, TAJBank, has introduced plans to challenge a N20 billion Mudarabah Sukuk bond as a part of its technique to bolster its Further Tier 1 capital.
The announcement was made by the {bank}’s Founder and Chief Govt Officer, Mr. Hamid Joda, in an announcement on Monday.
In keeping with Joda, the issuance is a part of TAJBank’s N100 billion Sukuk programme designed to drive the {bank}’s enterprise enlargement.
He famous that this new initiative follows the profitable issuance of the first-ever N10 billion Sukuk bond on the Nigerian Trade in 2023.
The proposed bond affords a singular alternative for traders, offering a aggressive 20.5% annual return.
“Particularly, the brand new Mudarabah Sukuk bond is designed to supply a steady and moral funding choice. It permits traders to take part within the {bank}’s profit-sharing ventures and underscores TAJBank’s dedication to increasing entry to revolutionary {financial} options and selling {financial} inclusion within the nation,” Joda mentioned.
Supply of additional earnings
The Mudarabah Sukuk bond is open to each particular person and company traders. Joda emphasised the {bank}’s objective to supply a dependable supply of additional earnings that may be simply accessed.
“We’re excited to carry this Mudarabah Sukuk to the market, providing a compelling funding alternative that aligns with moral {financial} rules. This itemizing on the NGX will allow a wider vary of traders to take part in our development and profit from our profit-sharing mannequin,” he added.
Joda inspired traders to contact their {financial} advisors or go to the {bank}’s web site for extra info on the Sukuk and the itemizing course of.
What you need to know
In latest developments, the Nigerian Trade Restricted (NGX) admitted TAJBank’s N10 billion Sukuk Mudarabah on its platform final month, commemorating the occasion with a closing gong ceremony.
- Talking on the event, the Divisional Head, Capital Markets, NGX, Mr Jude Chiemeka recommended the efforts of TajBank’s management and the events to the difficulty — Greenwich Service provider {Bank}, Lead Issuing Home; 117 Capital & Buraq Capital, Joint Sharia Advisers; and United Capital, Brokers —on the transaction.
- The N10 billion issuance, which carries a 15% annual return, represents an revolutionary mix of fairness and debt and serves as Further Tier 1 Capital. It’s the first of its variety in Nigeria, marking a serious milestone within the nation’s Islamic finance panorama.
Working beneath Islamic banking rules, TAJBank has positioned itself as a pioneer within the non-interest banking sector. The N10 billion Sukuk Mudarabah was raised beneath the {bank}’s N100 billion Sukuk programme, geared toward strengthening its capital adequacy ratio and supporting future development.
