TAJBank Limited, Nigeria’s fast-growing non-interest banking services provider, Tuesday on the trading floor of the Nigerian Exchange Limited (NGX) became the first corporate to list Sukuk Bond on the bourse.
The bank listed N10 billion Mudarabah Sukuk issuance after it successfully raised over N11.4 billion under its N100 Billion Sukuk Issuance Programme.
The first of its kind in Nigeria is an Additional Tier 1 Capital Mudarabah Sukuk with loss-absorbency features designed to help TAJ Bank strengthen its capital adequacy ratio and general corporate business activities.
The Issuance received interest from both retail and institutional investors, resulting in a subscription of 113.6%.
The oversubscription of this Issuance demonstrates that the investment culture in the country is still vibrant and there is sustained confidence in Nigeria’s path to economic recovery and stability.
Speaking at the closing gong ceremony in commemoration of the listing of the Sukuk issuance on the floor of the Exchange, Chairman, TAJBank, Alhaji Tanko Gwamna who was with top executives of the bank, reiterated that the listing is the first of its kind on the trading floor and it comes with non-interest bearing.
He said: “Manufacturing sector is the only sector that can take most of the youth out of the street and keep them engaged. Also, we are funding agriculture production and its value chain from start to finish. These two sectors are where we wanted to fund the Sukuk issuance.
“The listing on the Exchange is for investors to trade in the Sukuk and diversify their investment. We are setting the trend and I’m sure a lot of corporates will come along. We are making more offerings because the market is in need of corporate Sukuk. It was a transparent exercise and people can trade with our Sukuk and it will offer more liquidity for economic growth.
Commenting also, the Managing Director/CEO, TAJBank, Mr. Hamid Joda said the aim of the Sukuk listing is to give Nigeria’s investors alternative means of investment.
He said: “Millions of investors have been yearning for non-interest or Islamic instrument. We believe this is an opportunity for them to invest in such an instrument.
“The funds raised will be deployed into high-impact sectors that create jobs in Nigeria’s economy and in that way, it will have high-impact opportunities for millions of Nigerians.
“I believe with this move; we have inspired many other corporates in the financial space to come on board and issue Sukuk for greater development of our dear country”, Joda added.
Speaking at the ceremony, the Divisional Head, Capital Markets, NGX, Mr. Jude Chiemeka commended the efforts of TajBank’s leadership and the parties to the issue: Greenwich Merchant Bank, Lead Issuing House; 117 Capital & Buraq Capital, Joint Sharia Advisers; and United Capital, Brokers on the transaction.
Photo Caption
L – R: Mr. Sherif Idi, Executive Director/ECO, TAJBank, Dr. Olufemi Oyenuga, Chief Digital Officer, Nigerian Exchange Limited (NGX); Mr. Jude Chiemeka, Divisional Head, Capital Markets, NGX; Alhaji Tanko Isiaku Gwamna, Chairman, TAJBank; Mr. Hamid Joda, Managing Director/CEO, TAJBank; Mr. Bayo Rotimi, Managing Director, Greenwich Merchant Bank during a Closing Gong Ceremony in commemoration of the listing of the N10 billion Mudarabah Sukuk issuance sponsored by TAJBank Limited at NGX on Tuesday February 14, 2023 in Lagos.
