Non-interest lender TAJBank has signed a completion agreement for the N20 billion second tranche of its N100 billion Mudarabah Sukuk bond programme, marking a significant milestone in the bank’s efforts to provide innovative financial solutions to its customers. The agreement, signed at the bank’s headquarters in Abuja, is a major development in Nigeria’s non-interest banking industry.
The Mudarabah Sukuk bond, which has secured all necessary regulatory approvals, offers individuals and corporate investors an opportunity to stake their funds in an ethical instrument with a competitive 20.5% per annum return. According to the bank’s management, the bond is open to all investors, both individuals and corporates, and aims to provide a reliable source of extra income.
A Step Towards Inclusive Finance
The Chairman of TAJBank, Tanko Gwamna, expressed his excitement about the new bond, stating that it will enable a wider range of investors to participate in the bank’s growth and benefit from its profit-sharing model. “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,” he said.
Gwamna advised interested investors to contact their financial advisors for more information on the Sukuk and the listing processes. He emphasized that the bank is committed to providing innovative financial solutions that meet the needs of its customers and investors.
A Vote of Confidence
The Chief Executive Officer of the lead issuing house, AVA Capital Ltd, Kayode Fadahunsi, expressed his enthusiasm about being part of TAJBank’s success story in the non-interest banking industry. “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 N100bn programme,” he said.
Fadahunsi assured investors that the bank’s management will surpass their expectations in terms of return on investment and other benefits. He emphasized that the bank is committed to delivering value to its investors and stakeholders.
Investment Analysts’ Views
Investment analysts have expressed strong confidence that the N20 billion second tranche Mudarabah Sukuk bond issuance with a 20.5% annual return is potentially among the best offers to investors seeking to diversify their investment portfolios and earn good returns on a sustainable basis.
The analysts believe that the bond’s competitive return and profit-sharing model make it an attractive investment opportunity for individuals and corporates looking to earn good returns on their investments. They also praised TAJBank’s management for its commitment to delivering value to its investors and stakeholders.
A Successful Precedent
TAJBank’s maiden N10 billion Sukuk bond, listed on the Nigerian Exchange in February 2023, was over-subscribed by over 115%. The bank’s founder and Managing Director, Hamid Joda, had assured investors of good returns on their investments, and the new bond is expected to build on the success of the previous issuance.
The N20 billion Mudarabah Sukuk bond issuance is a significant development in Nigeria’s non-interest banking industry, and it is expected to attract a wide range of investors seeking ethical and profitable investment opportunities. With its competitive return and profit-sharing model, the bond is poised to provide a reliable source of income for investors and support the growth of TAJBank.
