Non-interest financial institution, TAJBank Limited, has announced a significant milestone with the oversubscription of its ₦20 billion Mudarabah Sukuk bond offer by 185.15 per cent. According to the bank, the oversubscription figure is based on data from relevant investment market authorities and highlights strong investor demand for its non-interest financial instruments.
The bank revealed in a statement on Thursday that the bond attracted an allotment of ₦57.03 billion, far surpassing the initial target. The Sukuk, which carries an annual profit rate of 20.5 per cent, is part of the second tranche of TAJBank’s ₦100 billion Sukuk issuance programme. The overwhelming investor response has been interpreted as a strong vote of confidence in TAJBank’s financial performance, governance, and innovative offerings in the non-interest banking sector.
TAJBank’s Founder and Managing Director, Mr. Hamid Joda, expressed his appreciation for the remarkable outcome of the Sukuk issuance, especially in light of the current economic conditions in Nigeria. He highlighted that the successful performance reflects growing trust in the bank’s operational model, which prioritises innovation, value delivery, and ethical financial solutions.
“This outstanding performance of the Sukuk bond is a clear demonstration of growing investor confidence in TAJBank. It speaks to the quality of our innovative products and services and the value we bring to the non-interest banking sector, especially considering the current realities in the debt market,” Joda said.
He extended his gratitude to the bank’s board, management, staff, regulatory authorities, and investors for their roles in making the Sukuk issuance a success. Joda reassured stakeholders of the bank’s continued commitment to protecting their interests and delivering sustainable returns, further strengthening its position as a leader in Nigeria’s non-interest banking industry.
Echoing similar sentiments, the bank’s Co-Founder and Executive Director, Mr. Sherif Idi, described the oversubscription as a reflection of investor trust and market confidence in TAJBank’s strategic direction. He reaffirmed the bank’s focus on delivering superior customer experiences and maintaining world-class standards in Islamic banking.
“This investment feat clearly demonstrates investors’ trust in TAJBank, and we will continue to exceed expectations through top-tier products and services. Our customers and investors remain our top priority,” Idi stated.
Market analysts view the success of the Sukuk issuance as a positive signal for Nigeria’s non-interest finance sector. They believe TAJBank’s performance will likely attract more investors, businesses, and customers seeking ethical and high-yield investment alternatives.
Since entering Nigeria’s non-interest banking space about five years ago, TAJBank has rapidly built a reputation for excellence and innovation. The bank has earned several industry accolades, including the Global Islamic Finance Award 2023 for “Best Sukuk Deal of the Year,” and BusinessDay’s “Islamic Bank of the Year” for three consecutive years,2021, 2022, and 2023. It also received Leadership Newspaper’s “Bank of the Year” award in 2020, further solidifying its status as a key player in Nigeria’s Islamic finance landscape.
