Non-interest lender TAJBank has signed the completion agreement for the N20bn second tranche of its N100 billion Mudarabah Sukuk bond programme.
The agreement, which was signed on Tuesday at its headquarters in Abuja, is coming after the issuance of the first-ever N10bn Sukuk bond on the Nigerian Exchange in 2023.
The new Mudarabah Sukuk bond of TAJBank, which has secured all necessary regulatory approvals, is an opportunity for individuals and corporate investors to stake their funds in an ethical instrument with a competitive 20.5 per cent per annum return.
According to the management of the bank, the new Mudarabah Sukuk bond is open to all investors, both individuals and corporates, and the goal is to provide a reliable source of extra income.
At the ceremony, the Chairman of TAJBank, Tanko Gwamna, said, “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 further advised interested investors to contact their financial advisors for more information on the Sukuk and the listing processes.
Commenting on the historic pact between his company and TAJBank on the Sukuk bond issuance, the Chief Executive Officer of the lead issuing house – AVA Capital Ltd, Mr Kayode Fadahunsi, said, “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.
“I want to assure investors that, as was the case in the bank’s maiden Sukuk bond listing on the exchange, the bank’s management will surpass their expectations in terms of return on their investment and other benefits in this second outing.”
Investment analysts have expressed strong beliefs that the N20bn second tranche Mudarabah Sukuk bond issuance with a 20.5 per cent annual return is potentially among the best offers to investors seeking to diversify their investment portfolios and earn good returns on a sustainable basis.
It would be recalled that TAJBank’s founder/Managing Director, Mr Hamid Joda, during the beating of the gong on the listing of the bank’s maiden N10bn Sukuk bond on the NGX in February 2023, assured investors of good returns on their investments. The bond was over-subscribed by over 115 per cent.