TAJBank Seeks N20bn Sukuk Bond To Strengthen Capital Base

TAJBank, Nigeria’s leading non-interest bank, has unveiled plans to issue a N20 billion Mudarabah Sukuk bond as part of its ongoing strategy to bolster its Additional Tier 1 capital.

This move aligns with the bank’s N100 billion Sukuk programme aimed at driving expansion and deepening financial inclusion.

Announcing the development, TAJBank’s Founder and CEO, Mr. Hamid Joda, highlighted that the bond offers a competitive 20.5 percent annual return, providing investors with a stable and ethical investment option. He noted that this issuance follows the bank’s successful N10 billion Sukuk bond offering on the Nigerian Exchange (NGX) in 2023.

Mr. Joda emphasised that the Mudarabah Sukuk bond is open to both individual and corporate investors, allowing them to participate in the bank’s profit-sharing ventures while earning a reliable source of extra income.

“We are excited to bring this 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,” he said.

The CEO encouraged interested investors to consult financial advisors or visit the bank’s website for more details on subscription and listing procedures.

TAJBank has positioned itself as a pioneer in Nigeria’s non-interest banking sector. Last month, the NGX admitted the bank’s N10 billion Sukuk Mudarabah bond, commemorating the milestone with a closing gong ceremony.

The NGX’s Divisional Head of Capital Markets, Mr. Jude Chiemeka, commended TAJBank and its partners—including Greenwich Merchant Bank (Lead Issuing House), 117 Capital & Buraq Capital (Joint Sharia Advisers), and United Capital (Brokers)—for their role in the successful issuance.

The N10 billion bond, offering a 15 percent annual return, was the first of its kind in Nigeria and marked a significant step in the country’s Islamic finance landscape. TAJBank’s latest N20 billion issuance is expected to further strengthen its capital adequacy ratio and support its expansion plans.