By Ayomide Otitoju
TAJBank, Nigeria’s leading non-interest bank, has announced plans to raise ₦20 billion through a Mudarabah Sukuk bond as part of efforts to strengthen its Additional Tier 1 capital.
The bank’s Founder and Chief Executive Officer, Hamid Joda, disclosed this in a statement on Monday in Abuja, highlighting that the issuance is part of its ₦100 billion Sukuk programme aimed at driving business expansion.
Joda noted that the latest investment initiative follows the successful issuance of Nigeria’s first-ever ₦10 billion Sukuk bond on the Nigerian Exchange (NGX) in 2023.
He described the upcoming Sukuk as an ethical investment opportunity offering a competitive 20.5 per cent per annum return. “Specifically, the new Mudarabah Sukuk bond is designed to provide a stable and ethical investment option, allowing investors to participate in the bank’s profit-sharing ventures. This underscores TAJBank’s commitment to expanding access to innovative financial solutions and promoting financial inclusion across Nigeria,” he stated.
Joda emphasized that the Mudarabah Sukuk is open to both individual and institutional investors, offering a reliable source of additional income that can be accessed conveniently. “We are excited to bring this Mudarabah Sukuk to the market, providing a compelling investment opportunity that aligns with ethical financial principles. The listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model,” he added.
TAJBank’s latest move reinforces its position as a pioneer in Nigeria’s non-interest banking sector, offering alternative investment instruments that align with Islamic finance principles while catering to a broad spectrum of investors.
