TAJBank secures approval for N20 billion Sukuk bond offering 20.5% annual return

TAJBank, Nigeria’s leading non-interest bank, has received regulatory approval to issue the second tranche of its N100 billion Mudarabah Sukuk bond program, valued at N20 billion. The bond offers investors an attractive 20.5% annual return, reinforcing the bank’s commitment to ethical, interest-free financial products.

This latest issuance follows the success of TAJBank’s inaugural N10 billion Sukuk bond in 2023, which was oversubscribed by 115%, signaling strong investor confidence in the bank’s profit-sharing model and ethical banking principles.

Alhaji Tanko Isiaku Gwamna, Chairman of TAJBank, emphasized that the new Sukuk bond provides a unique opportunity for individuals and corporate investors to participate in a Sharia-compliant investment that aligns with ethical finance practices. “This bond allows more Nigerians to benefit from our profit-sharing ventures while promoting financial inclusion,” Gwamna said.

The bond is part of a broader strategy to expand TAJBank’s Sukuk program and strengthen its capital base. AVA Capital Ltd, the lead issuing house, expressed optimism about the bond’s appeal, highlighting its competitive return in a market where traditional investments often yield lower returns.

Industry analysts note that Nigeria’s Islamic finance sector is poised for growth, supported by increasing sovereign Sukuk issuances and regulatory developments. Non-interest banks in Nigeria recorded a 110% growth in assets year-on-year by the end of 2024, reflecting rising demand for ethical financial products.

TAJBank’s Sukuk bond issuance marks a significant milestone in Nigeria’s financial landscape, offering investors a stable and ethical alternative in an evolving market.