TAJBank, a non-interest bank, is set to launch a N20 billion Mudarabah Sukuk as part of its strategic expansion drive. The bond issuance, aimed at bolstering its Additional Tier 1 capital, is a key step in the bank’s broader plan to raise N100 billion through a Sukuk programme designed to offer investors ethical, high-yield financial instruments.

Building on the success of its N10-billion maiden Sukuk issuance in 2023, which was oversubscribed by 115 per cent, TAJBank’s latest Sukuk bond presents a lucrative opportunity for investors seeking stable returns in compliance with Islamic finance principles.

With an attractive 20.5 per cent per annum return, the offering is designed to appeal to both individual and institutional investors looking for ethical and rewarding investment options.

The Mudarabah Sukuk follows a profit-sharing model, allowing investors to participate in TAJBank’s financial growth while ensuring compliance with Shariah principles.

The bank emphasises that this issuance aligns with its mission to expand financial inclusion and provide innovative financial solutions tailored to ethical investors.

The final terms and conditions of the bond are currently undergoing regulatory review, but TAJBank assures prospective investors that participation will be seamless and accessible from anywhere.

TAJBank’s Founder and CEO, Hamid Joda, expressed confidence in the Sukuk’s offering. “We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles.

“This listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model.”

Joda had previously assured investors of strong returns during the listing of the bank’s first Sukuk bond on the Nigerian Exchange (NGX) in February 2023.

The success of that issuance set the stage for this latest fundraising effort, as TAJBank seeks to scale operations and expand its financial offerings. Investment analysts are already backing the N20 billion Mudarabah Sukuk, noting its secure, transparent structure and attractive yield.