TAJBank has revealed its intention to issue a N20bn Mudarabah Sukuk as part of a larger N100bn Sukuk program. The objective is to bolster its Additional Tier 1 capital and facilitate business expansion opportunities.
The bank disclosed that this new investment initiative, which follows the successful issuance of Nigeria’s initial N10bn Sukuk bond on the Nigerian Exchange in 2023, offers investors an attractive 20.5% annual return. The Mudarabah Sukuk is structured to provide profit-sharing prospects for both individual and institutional investors, underscoring TAJBank’s dedication to financial inclusivity and innovative financial solutions.
In a statement, TAJBank’s Founder and CEO, Hamid Joda, expressed enthusiasm about introducing the Mudarabah Sukuk to the market. He emphasized the offering as a compelling investment opportunity aligned with ethical financial principles. This listing on the NGX will broaden the investor base, allowing more individuals to participate in the bank’s growth and benefit from its profit-sharing model.
Financial analysts have lauded the N20bn Mudarabah Sukuk as a secure and transparent investment in line with ethical finance tenets. With a 20.5% return rate, it presents an appealing choice for investors seeking portfolio diversification and passive income generation.
TAJBank’s previous N10bn Sukuk issuance in 2023 was oversubscribed by over 115%, indicating strong investor confidence in the bank’s financial strategy and future prospects.
It was also reported that TAJBank’s profit before tax surged by 122% to N11.3bn in 2023.