TAJBank is set to issue a N20 billion Mudarabah Sukuk bond to enhance its Additional Tier 1 capital, targeting a broader N100 billion Sukuk initiative. CEO Mr. Hamid Joda announced a competitive 20.5 percent annual return for investors, emphasizing the bond’s ethical investment characteristics. Open to all investors, this initiative promotes financial inclusion within Nigeria.
TAJBank, a prominent non-interest bank in Nigeria, is finalizing plans to issue a Mudarabah Sukuk bond of N20 billion in order to enhance its Additional Tier 1 (AT1) capital. Mr. Hamid Joda, the Founder and CEO, announced this development during a virtual news conference held in Abuja. AT1 capital is characterized by its lack of fixed maturity, making these capital instruments evergreen in nature.
This Sukuk bond issuance is part of a broader N100 billion Sukuk initiative aimed at facilitating the bank’s expansion strategies. The new investment program follows the successful launch of Nigeria’s first N10 billion Sukuk bond on the Nigerian Exchange in 2023. Mr. Joda emphasized that this new venture provides both individuals and institutions with an ethical investment opportunity promising a competitive return rate of 20.5 percent per annum.
Furthermore, the Mudarabah Sukuk bond is structured to deliver ethical investment options that allow investors to engage in the bank’s profit-sharing ventures. This initiative underscores TAJBank’s commitment to enhancing financial inclusion by offering innovative financial solutions to the Nigerian public. Mr. Joda confirmed that the bond is open to all types of investors, including private individuals and corporate entities.
The Chief Executive excitedly stated, “We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles.” The listing on the Nigerian Exchange will enhance participation from a diverse range of investors, allowing them to benefit from the bank’s profit-sharing model. Interested investors are encouraged to contact their financial advisors or visit the TAJBank website for further information on the Sukuk and the listing process.
In conclusion, TAJBank’s upcoming issuance of the N20 billion Mudarabah Sukuk bond marks a significant step in promoting ethical investment opportunities and expanding its capital base. This move not only reflects the bank’s commitment to financial inclusivity but also aims at empowering a wide range of investors with attractive returns through the Sukuk programme.
Original Source: nannews.ng
