ABUJA, Nigeria (VOICE OF NAIJA)-Non-interest bank TAJBank Limited has achieved a 185.15 per cent oversubscription in its recent N20bn Mudarabah Sukuk bond issuance.
In a statement released on Thursday, the bank noted that the figure was based on data from investment market authorities assessing the bond’s performance.
The report indicated that the debt instrument, which carries an annual profit rate of 20.5 per cent, attracted N57.03bn in allotments, reflecting a 185.15 per cent oversubscription and underscoring growing investor confidence in the bank.
Commenting on the result, TAJBank’s Founder and Managing Director, Mr. Hamid Joda, described the N20bn Mudarabah Sukuk bond the second tranche of the bank’s N100bn Sukuk programme as remarkable, especially considering the current micro and macroeconomic challenges impacting Nigerians’ real incomes.
“Let me say that this outstanding performance of the Sukuk bond is a clear demonstration that the bank is enjoying growing investor confidence.
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This can only be attributed to the quality of innovative products and services, as well as the value addition TAJBank continues to deliver in the non-interest banking subsector, especially when analysed within the context of current realities in the debt instrument market,” Joda said.
He added, “I want to thank the board, management and staff of the bank, the regulatory authorities, and the investors for their contributions to the success of the bond issuance.
I also assure them that TAJBank will continue to protect their interests to ensure a win-win experience for all stakeholders as we sustain our drive to remain the leading player in the nation’s non-interest banking subsector.”
Also speaking, the bank’s Co-Founder and Executive Director, Mr. Sherif Idi, said, “This investment feat clearly demonstrates investors’ trust in TAJBank, and we will continue to do our best to exceed their expectations through world-class products and services. As always, our focus remains on our customers and investors.”
Market analysts believe that the remarkable success of TAJBank’s latest N20bn Mudarabah Sukuk bond will attract more investors, businesses, and customers to the bank, encouraging them to take advantage of its innovative financial solutions and competitive returns.
Since entering Nigeria’s non-interest banking sector about five years ago, TAJBank has built a strong reputation for adhering to global Islamic finance standards.
The bank has received multiple recognitions, including the Global Islamic Finance Award 2023 for ‘Best Sukuk Deal of the Year’, as well as BusinessDay’s ‘Islamic Bank of the Year’ award in 2021, 2022, and 2023, and Leadership Newspaper’s ‘Bank of the Year’ award in 2020, among others.