TAJBank is set to launch a N20 billion Mudarabah Sukuk bond, aimed at increasing its Additional Tier 1 capital. The initiative is part of a N100 billion Sukuk programme to facilitate business growth. With a projected return of 20.5 percent, the bond presents a lucrative opportunity for ethical investment, welcoming participation from both individuals and corporate investors.
TAJBank, a leading non-interest financial institution in Nigeria, is in the final stages of arranging to raise N20 billion through a Mudarabah Sukuk bond. This initiative aims to enhance the bank’s Additional Tier 1 (AT1) capital. The bank’s Founder and CEO, Mr. Hamid Joda, made the announcement during a virtual news conference in Abuja, emphasizing that AT1 capital consists of capital instruments with no fixed maturity.
The bond issuance is part of TAJBank’s broader strategy, which involves a N100 billion Sukuk programme aimed at facilitating business expansion. This move follows the successful launch of a N10 billion Sukuk bond on the Nigerian Exchange in 2023. Mr. Joda highlighted that the new Sukuk offers a lucrative 20.5 percent annual return, appealing to both individual and institutional investors seeking ethical investment opportunities.
The Mudarabah Sukuk bond allows investors to participate in profit-sharing ventures, demonstrating TAJBank’s commitment to innovative financial solutions and enhancing financial inclusion within the nation. Mr. Joda expressed enthusiasm about the Sukuk, stating it presents a remarkable investment opportunity that adheres to ethical financial practices.
The Mudarabah Sukuk is available to all investors, including individuals and corporate entities, providing a dependable source of additional income that can be accessed from home. Mr. Joda encouraged prospective investors to consult their financial advisors or visit the bank’s website for further information on the Sukuk and the listing process.
In conclusion, TAJBank’s initiative to issue a N20 billion Mudarabah Sukuk bond represents a significant step towards enhancing its AT1 capital and expanding its operations. By offering an ethical investment option with a competitive return, the bank aims to attract a diverse range of investors and promote financial inclusion in Nigeria. This strategic move not only reflects TAJBank’s commitment to innovative financial solutions but also positions it favorably within the non-interest banking sector.
Original Source: nannews.ng
