TAJBank Limited, Nigeria’s fastest-growing non-interest bank, has successfully signed an agreement for the issuance of a N20 billion Mudarabah Sukuk bond. The Islamic bond, designed to deepen the bank’s funding base and finance its expansion plans, was oversubscribed by over 115%, reflecting strong investor confidence in the bank’s performance and governance.
The bond issuance, structured under the Mudarabah model of Islamic finance, allows investors to provide capital which the bank uses for sharia-compliant investments, with profits shared according to agreed ratios. This approach aligns with the bank’s ethical banking principles and growing popularity among faith-conscious investors.
The Managing Director of TAJBank, Mr. Hamid Joda, expressed delight at the outcome of the Sukuk issuance, stating that it demonstrates the increasing appetite for Islamic finance products in Nigeria. “We are extremely pleased with the level of subscription. It reflects investors’ trust in TAJBank’s financial strength, transparency, and commitment to delivering value,” he said.
He assured investors of attractive returns, in line with the bank’s past performance. “We made a promise to deliver sustainable and competitive returns, and our Board has been fulfilling that promise consistently,” he added.
TAJBank, which operates under Islamic banking principles, has grown significantly since its launch in 2019, expanding its footprint across key Nigerian cities and leveraging digital banking channels to deepen financial inclusion. The success of this Sukuk issuance underscores its rising profile as a key player in Nigeria’s non-interest banking space and its ability to attract both institutional and retail investors.
The proceeds of the bond will be deployed to finance sharia-compliant projects and assets, support small and medium-scale enterprises (SMEs), and deepen the bank’s technological infrastructure for enhanced customer service.
This milestone further affirms TAJBank’s role in advancing alternative finance in Nigeria and building a robust ethical banking ecosystem.
