TAJBank Limited has announced that its N20 billion Mudarabah Sukuk bond has been oversubscribed by 185.15 per cent, reflecting strong investor participation in the country’s non-interest banking sector.
The bank’s Managing Director, Hamid Joda, confirmed the development in a statement on Friday in Abuja, noting that market data released by investment authorities showed the bond attracted total allotments amounting to N57.03 billion. The bond carries an annual profit rate of 20.5 per cent.
“The debt instrument, with annual profit rate at 20.5 per cent per annum, recorded N57,029,771 billion allotment. This represents 185.15 per cent oversubscription and highlights the growing investor confidence in the bank,” Joda said.
He further explained that the N20 billion bond constitutes the second tranche of TAJBank’s broader N100 billion Sukuk programme and emphasised that the subscription rate was notable given prevailing microeconomic and macroeconomic conditions.
“This outstanding performance of the Sukuk bond is a clear demonstration that the bank is enjoying growing investor confidence. This can only be attributed to the quality of innovative products and services, value addition TAJBank is delivering in the non-interest banking subsector,” he said.
Joda expressed appreciation to the bank’s board, management, regulatory authorities, and investors for their role in the bond’s success and assured stakeholders that TAJBank would continue to safeguard their interests.
The bank’s Executive Director, Sherif Idi, added that the subscription outcome reflected investor trust and reiterated the bank’s commitment to maintaining high standards in product delivery and service.
“Since TAJBank debuted in the non-interest banking space about five years ago, it has been promoting ethical banking through investor- and customer-centric products and services,” he said.
TAJBank has previously received several accolades recognising its performance in the non-interest banking sector, including the Global Islamic Finance Award for ‘Best Sukuk Deal of the Year 2023’ and BusinessDay’s ‘Islamic Bank of the Year’ awards for 2021, 2022, and 2023.
