TAJBank Plans N20 Billion Sukuk Issuance to Enhance Capital and Promote Ethical Investment

TAJBank is set to issue a N20 billion Mudarabah Sukuk bond to strengthen its Additional Tier 1 capital. This effort is part of a larger N100 billion Sukuk program aimed at business expansion. The bond offers a competitive 20.5% annual return, attracting both individual and corporate investors committed to ethical finance.

TAJBank, a prominent non-interest bank in Nigeria, is preparing to issue a Mudarabah Sukuk bond worth N20 billion to enhance its Additional Tier 1 (AT1) capital. This announcement was made by the Founder and Chief Executive Officer, Mr. Hamid Joda, in a virtual news conference held in Abuja. The AT1 capital represents perpetual capital instruments without a fixed maturity date.

The Mudarabah Sukuk bond issuance is part of a broader N100 billion Sukuk program aimed at facilitating the bank’s expansion initiatives. This new offering arrives two years after the successful N10 billion Sukuk bond issuance on the Nigerian Exchange in 2023. The bond provides a competitive annual return of 20.5%, presenting a valuable opportunity for both individuals and institutions to engage in ethical investment.

Joda emphasized that the Sukuk bond allows investors to partake in the bank’s profit-sharing ventures, reaffirming TAJBank’s dedication to enhancing access to innovative financial solutions and promoting financial inclusion throughout Nigeria. The investment opportunity is welcoming to all, including individual and corporate investors, thus delivering a reliable source of additional income.

The introduction of the Mudarabah Sukuk in the market is coupled with the intention of adhering to ethical financial principles. The listing on the Nigerian Exchange (NGX) will broaden participation from diverse investors, allowing them to benefit from the bank’s profit-sharing model. Interested parties are encouraged to consult their financial advisors or visit TAJBank’s website for further details regarding the Sukuk and the listing procedure.

In conclusion, TAJBank’s forthcoming issuance of the N20 billion Mudarabah Sukuk bond signifies a strategic move to enhance its Additional Tier 1 capital while broadening investment opportunities for ethical investors. By engaging with both individuals and corporations, the bank aims to support financial inclusion and provide accessible income sources through its profit-sharing model. This initiative marks a substantial step in promoting innovative financial solutions in Nigeria.

Original Source: nannews.ng