TAJBank, Nigeria’s non-interest lender, has acquired approval for the second tranche of its N100 billion Mudarabah Sukuk bond programme, valued at N20 billion.
In accordance with a press assertion despatched to Nairametrics on Tuesday, the N20 billion Mudarabah Sukuk bond has been granted all needed regulatory approvals and is designed to offer an moral funding possibility for these within the bank’s profit-sharing ventures.
The bond, which provides a 20.5% annual return, goals to advertise monetary inclusion and provide steady returns for traders whereas adhering to non-interest banking ideas.
Two years after first Sukuk Issuance
This new N20 billion Sukuk bond comes practically two years after the issuance of TAJBank’s first-ever N10 billion Sukuk bond in 2023. The preliminary bond, listed on the Nigerian Trade, was the primary of its type in Nigeria’s monetary historical past.
It was oversubscribed by 115%, reflecting robust investor curiosity and the bank’s capability to satisfy its dedication to moral monetary practices.
The launch of this second tranche affirms TAJBank’s ongoing technique to broaden its Sukuk programme, geared toward offering moral funding alternatives to the general public.
The assertion learn, “TAJBank, Nigeria’s main non-interest lender, on Tuesday signed the completion settlement for the N20 billion second tranche of its N100 billion Mudarabah Sukuk bond programme.
“The newest funding initiative of the a number of award-winning non-interest lender, which is coming after about two years following the issuance of the first-ever N10 billion Sukuk bond on the Nigerian Trade in 2023, presents one other alternative for people and company traders to stake their funds in an moral instrument with a aggressive 20.5% every year return.”
Within the press assertion, TAJBank’s Chairman, Alhaji Tanko Isiaku Gwamna, famous that the brand new Sukuk bond would enable the general public to spend money on a fashion in keeping with moral monetary practices.
He highlighted that the bond would additionally give extra traders the prospect to learn from the bank’s profit-sharing mannequin, which has been a characteristic of its enterprise mannequin.
The assertion additionally learn, “It will be recalled that TAJBank’s Founder/Managing Director, Mr. Hamid Joda had, through the beating of the Gong on the itemizing of the Bank’s maiden N10 billion Sukuk bond on the NGX in February 2023, which was over-subscribed by over 115%, assured traders of fine returns on their investments and the Board has been fulfilling the promise since then.”
Partnership with AVA Capital Ltd
AVA Capital Ltd, the lead issuing home for the bond, expressed confidence within the bond’s potential. CEO Mr. Kayode Fadahunsi remarked on the bank’s continued success within the non-interest banking sector, stating that the N20 billion Sukuk bond is a vital a part of TAJBank’s bigger N100 billion programme.
Fadahunsi reassured potential traders that the bank’s administration would proceed to satisfy expectations when it comes to returns.
The assertion additionally famous that funding analysts have prompt that the 20.5% annual return provided by the brand new Sukuk bond is a pretty proposition, particularly for these in search of to diversify their portfolios with moral investments. The bond is anticipated to attraction to traders on the lookout for steady returns in an financial atmosphere the place many conventional investments provide decrease yields.
What it’s best to know
- Fitch Scores earlier famous that Nigeria’s Islamic finance trade is more likely to broaden from the second half of 2025 by way of 2026 on the again of accelerating sovereign sukuk issuances and Islamic banking property, pushed by new paid-in capital necessities and regulatory strikes to develop the trade.
- In accordance with Fitch, non-interest banks’ property recorded a development of 110% year-o-year as of end-2024, pushed by a big improve from deposits and loans, every greater than doubling in worth.
- Additionally, after a two-year break, the Debt Administration Workplace (DMO) introduced that the Federal Authorities has efficiently recorded a complete of N2.205 trillion subscriptions by way of the Sovereign Sukuk since its debut in 2017, representing an oversubscription of 735%, demonstrating robust investor urge for food for sharia-compliant devices in Nigeria’s debt capital market.
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