By DAYO ADESULU
TAJBank, Nigeria’s leading non-interest financial institution, is set to raise N20 billion Mudarabah Sukuk Bond as part of its strategic plan to boost capital and expand its business operations. This issuance is a major component of the bank’s N100 billion Sukuk programme, offering investors an ethical and high-yielding investment opportunity in compliance with Islamic finance principles.
TAJBank’s N20 Billion Mudarabah Sukuk Bond: A Step Towards Growth
The N20 billion Mudarabah Sukuk Bond marks another milestone for TAJBank, following the success of its first-ever N10 billion Sukuk Bond issued on the Nigerian Exchange (NGX) in 2023. The new issuance provides investors—both individuals and institutions—with a competitive 20.5% annual return, reinforcing TAJBank’s commitment to ethical finance and financial inclusion.
With Nigeria’s non-interest banking sector experiencing rapid growth, TAJBank’s move to raise additional Tier 1 capital through the Sukuk Bond issuance aligns with its vision of expanding financial solutions tailored to investors who seek stable, Shariah-compliant investment options.
A Unique Investment Opportunity in Ethical Banking
The Mudarabah Sukuk Bond is structured as a profit-sharing investment that enables investors to participate in TAJBank’s growth while adhering to Islamic financial principles. Unlike conventional bonds, this Sukuk issuance allows investors to share in the bank’s profits rather than earning fixed interest.
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According to TAJBank’s management, the Sukuk issuance terms are currently undergoing final regulatory approvals and will soon be accessible to interested investors. This ethical investment is open to individuals and corporate entities, providing a reliable source of income that can be managed seamlessly online.
CEO Speaks on the N20 Billion Sukuk Bond
Speaking on the planned Sukuk issuance, TAJBank’s Founder and CEO, Mr. Hamid Joda, emphasized the bank’s mission to provide innovative and ethical financial solutions. He stated:
“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.”
With its listing on the Nigerian Exchange (NGX), the N20 billion Mudarabah Sukuk Bond is set to attract both retail and institutional investors looking for stable, Shariah-compliant investments.
How to Invest in TAJBank’s Mudarabah Sukuk
Interested investors can obtain more information on the Sukuk Bond by visiting www.tajbank.com or consulting their financial advisors. The issuance will offer easy accessibility to all investors, ensuring participation in TAJBank’s continued success.
TAJBank’s N20 billion Mudarabah Sukuk Bond represents a significant step in Nigeria’s Islamic finance sector, providing investors with a secure, ethical, and high-yielding investment avenue. As the bank continues its expansion drive, this Sukuk issuance not only strengthens its financial base but also promotes financial inclusion and innovation in non-interest banking.
Mudarabah Sukuk offers several benefits to African countries, particularly in fostering economic growth, financial inclusion, and infrastructure development. Here are some key advantages:
1. Infrastructure and Economic Development
Mudarabah Sukuk provides long-term financing for critical infrastructure projects such as roads, energy, housing, and healthcare, helping African governments bridge funding gaps without relying heavily on traditional debt-based financing.
2. Financial Inclusion and Ethical Investment
Since Mudarabah Sukuk follows Islamic finance principles, it appeals to both Muslim and non-Muslim investors who prefer ethical, interest-free investment options. This enhances financial inclusion and broadens the investor base in African markets.
3. Attracting Foreign Direct Investment (FDI)
Sukuk instruments attract Middle Eastern, Asian, and global Sharia-compliant investors, bringing much-needed foreign investment into African economies and strengthening international trade and financial partnerships.
4. Stability and Risk-Sharing Mechanism
Unlike conventional bonds, Mudarabah Sukuk operates on a profit-sharing basis, reducing financial risk for governments and institutions. Investors share in the profits rather than earning fixed interest, making it a more sustainable financing model.
5. Strengthening Local Capital Markets
Issuing Mudarabah Sukuk encourages the growth of African capital markets by introducing diversified investment products. It helps governments and corporations raise capital while developing a more resilient financial sector.
6. Reducing Debt Burden
Since Mudarabah Sukuk is structured around asset-backed or revenue-generating projects, it minimizes excessive debt accumulation, offering African nations a sustainable alternative to traditional borrowing.
7. Supporting Small and Medium Enterprises (SMEs)
Sukuk financing can be used to support SMEs and entrepreneurship, providing funds for business expansion, job creation, and economic empowerment, particularly in underserved communities.
8. Enhancing Public-Private Partnerships (PPPs)
Governments can use Mudarabah Sukuk to facilitate PPPs in key sectors such as transportation, energy, and education, ensuring efficient project execution while leveraging private sector expertise and funding.
Conclusion
Mudarabah Sukuk presents a transformative opportunity for African economies, enabling them to access sustainable, ethical, and diversified sources of funding. By leveraging this Sharia-compliant investment tool, African nations can promote financial stability, economic resilience, and inclusive growth.
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Dayo Adesulu, online editor, SEO expert.
