Abuja: TAJBank, a leading non-interest bank in Nigeria, has announced its plans to raise N20 billion through a Mudarabah Sukuk bond to enhance its Additional Tier 1 (AT1) capital. This was revealed by the bank’s Founder and Chief Executive Officer, Mr. Hamid Joda, during a virtual news conference held in Abuja.

According to News Agency of Nigeria, the bond issuance is part of TAJBank’s broader N100 billion Sukuk program aimed at supporting the bank’s expansion plans. Mr. Joda highlighted that this initiative follows the successful issuance of a N10 billion Sukuk bond on the Nigerian Exchange in 2023.

Mr. Joda explained that the Mudarabah Sukuk bond provides an opportunity for individuals and institutions to invest in an ethical financial instrument with a competitive annual return of 20.5 percent. He emphasized that the bond is designed to offer a stable investment option, allowing investors to participate in the bank’s profit-sharing ventures.

The Mudarabah Sukuk is accessible to all investors, including individuals and corporate entities. Mr. Joda noted that the goal is to offer a reliable source of additional income that can be accessed conveniently. He expressed excitement about the new Sukuk, underscoring its alignment with ethical financial principles.

Mr. Joda encouraged potential investors to seek guidance from their financial advisors or visit the bank’s website for more information on the Sukuk and the listing process on the NGX.