Business

TAJBank Signs Agreement For N20Bn Mudarabah Sukuk Bond Issuance

Published

5 months ago

June 10, 2025

Joel Ajayi

TAJBank, Nigeria’s leading non-interest lender, on Tuesday signed the completion agreement for the N20 billion second tranche of its N100 billion Mudarabah Sukuk bond programme.

The latest investment initiative of the multiple award-winning non-interest lender, which is coming after about two years following the issuance of the first-ever N10 billion Sukuk bond on the Nigerian Exchange in 2023, presents another opportunity for individuals and corporate investors to stake their funds in an ethical instrument with a competitive 20.5% per annum return.

Specifically, the new Mudarabah Sukuk bond of TAJBank, which has secured all necessary regulatory approvals, is designed to offer a stable and ethical investment option to investors to participate in the bank’s profit-sharing ventures, and underscores TAJBank’s commitment to expanding access to innovative financial solutions and promoting financial inclusion in the country.

According to the management of the bank, the new Mudarabah Sukuk bond is open to all investors, both individuals and corporates and the goal is to provide a reliable source of extra income, accessible from the comfort of your home.
Briefing journalists on the importance of the agreement signing ceremony, the Chairman of TAJBank, Alhaji Tanko Isiaku Gwamna, said: “The offer of the N20bn Mudarabah Sukuk to the market is to avail members of the public an investment opportunity that aligns with ethical financial principles.

“As the Board and management of our bank demonstrated in the maiden issuance of the bank’s Sukuk, the offer of the new N20bn Sukuk bond on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model”, the Chairman assured.

He further advised interested investors to contact their financial advisors or visit www.tajbank.com for more information on the Sukuk and the listing processes.

Commenting on the historic pact between his company and TAJBank on the Sukuk bond issuance, CEO of the lead issuing house – AVA Capital Ltd, Mr. Kayode Fadahunsi, said: “We are very excited to be part of TAJBank’s success story in the non-interest banking industry, which is being consolidated upon with the planned issuance of its N20bn Mudarah Sukuk in the NGX as part of its N100 billion programme.

“I want to assure investors that as was the case in the Bank’s maiden Sukuk bond listing on the Exchange, the bank’s management will surpass their expectations in terms of return on their investment and other benefits in this second outing”, Fadahunsi added.

Investment analysts strongly believe that the N20 billion second tranche Mudarabah Sukuk bond issuance with a 20.5% annual return is potentially among the best offer to investors seeking to diversify their investment portfolios and good returns on a sustainable basis.

It would be recalled that TAJBank’s Founder/Managing Director, Mr. Hamid Joda had, during the beating of the Gong on the listing of the Bank’s maiden N10 billion Sukuk bond on the NGX in February 2023, which was over-subscribed by over 115%, assured investors of good returns on their investments and the Board has been fulfilling the promise since then

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Business

TAJBank Emerges Nigeria’s Biggest Non-Interest Bank

Published

2 weeks ago

October 23, 2025

The Gleamer

Cyril Ogar

After five years of operations in Nigeria’s rapidly evolving non-interest banking (NIB) space, TAJBank Limited has become the biggest player in the NIB subsector based on its total assets and gross earnings values.

Disclosing this during his paper presentation on the key performance indices in the non-interest banking space over the past few years at a seminar organized by Leaders Corporate Services with the theme “Roles of Non-Interest Banks In SMEs’ Financing” for SME entrepreneurs yesterday in Abuja, an investment expert, Mr. Olabode Akeredolu-Ale, maintained that based on the non-interest banks’ approved financial statements for the half year 2025, TAJBank currently remained the biggest in terms of its total assets.

The expert, a chartered stockbroker, specifically confirmed that his recent investment researches on the NIBs and their financial performances showed that TAJBank, with its total assets rising to N1.017 trillion in half year 2025 up from N953.098 billion as of December 2024, which is about N53 billion higher than the nearest NIB’s assets, now ranked top in the banking subsector.

According to him, TAJBank’s gross earnings for H1 2025 also surged to N53.752 billion from N32.86 billion as of December 2024, representing a 64% growth, and higher than the nearest NIB’s gross earnings in the period under review.

This is even as he disclosed that on the NIBs’ earnings per share during the half year, TAJBank reported N61.36 kobo earnings per share, about 92% higher than the earnings per share of the next NIB during the period.

Akeredolu-Ale, who is also a chartered accountant, clarified: “The figures I am reeling out here on the NIBs are sourced from the banking and capital market regulatory institutions’ platforms, which anyone can access to verify.

“I am part of this event because of my research interest in non-interest banking and how the players in the subsector in Nigeria can help to leverage their competencies in innovation and ethical banking to support our MSMEs.

“Today, the MSMEs cannot access DMBs’ loans due to high lending rates and other inclement macroeconomic factors. This is where I think the NIBs have become very crucial to Nigeria’s economic growth.

“Overall, my findings on the NIBs indicated that they are all trying their best with non-interest loans to support entrepreneurs, particularly the MSMEs owners. I have advised those of them at this seminar to explore the cost-friendly financing options of the NIBs to grow their businesses by opening accounts with the NIBs”, the expert added.

Another speaker at the event, Benjamin Chukwudi, also commended the NIBs for their “catalytic roles in helping SMEs to access interest-free loans and providing them the needed financial management advisory, which have been helping them in sustaining their operations in the face of rising cost of doing business in the country.”

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