TAJBank, Nigeria’s foremost non-interest lender, on Tuesday finalised the N20 billion second tranche of its N100 billion Mudarabah Sukuk bond programme.
The offering—coming nearly two years after the bank launched its inaugural N10 billion sukuk on the Nigerian Exchange in 2023—offers retail and institutional investors a fresh opportunity to invest in a shariah-compliant instrument, delivering a competitive annual return of 20.5%.
Specifically, the new issuance, which has secured all necessary regulatory approvals, is designed to offer a stable and ethical investment option to investors to participate in the bank’s profit-sharing ventures, and underscores TAJBank’s commitment to expanding access to innovative financial solutions and promoting financial inclusion in the country.
According to the bank’s management, the new Mudarabah Sukuk bond 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 their homes.
Read also: TAJBank eyes N20bn Mudarabah sukuk bond to boost capital
Speaking at the agreement signing ceremony, Tanko Isiaku Gwamna, TAJBank chairman said the N20 billion Mudarabah Sukuk issuance is aimed at providing the public with an investment opportunity rooted in ethical financial principles.
“As the board and management of our bank demonstrated in the maiden issuance of the bank’s Sukuk, the offer of the new N20bn Sukuk bond on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model”, the chairman told journalists.
He further advised interested investors to contact their financial advisors or visit www.tajbank.com for more information on the Sukuk and the listing processes.
Commenting on the historic pact between his company and TAJBank on the Sukuk bond issuance, Kayode Fadahunsi who is the CEO of the lead issuing house – AVA Capital Ltd, said: “We are very excited to be part of TAJBank’s success story in the non-interest banking industry, which is being consolidated upon with the planned issuance of its N20bn Mudarah Sukuk in the NGX as part of its N100 billion programme.
“I want to assure investors that as was the case in the bank’s maiden Sukuk bond listing on the Exchange, the management will surpass their expectations in terms of return on their investment and other benefits in this second outing,” Fadahunsi added.
Investment analysts view TAJBank’s N20 billion second tranche Mudarabah Sukuk, offering at 20.5% annual return, as one of the most attractive options currently available for investors seeking portfolio diversification alongside steady, ethical, and sustainable returns.
“In a market searching for stability and value, this Sukuk stands out—not just for its yield, but for its alignment with long-term, responsible investing principles,” Abdul Kareem Musa, an Abuja-based investment strategist at MeritPoint Capital stated.
It would be recalled that Hamid Joda, TAJBank’s Founder and Managing Director, pledged good returns for investors during the gong ceremony marking the listing of the bank’s inaugural ₦10 billion Sukuk bond on the Nigerian Exchange in February 2023. The issuance was oversubscribed by more than 115%, reflecting strong investor confidence. Since then, the board has consistently delivered on its promise of good returns.
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