TAJBank Become First Corporation to List Sukuk Bonds on Nigerian Stock Exchange
TECH DIGEST– TAJBank Limited, a non-interest banking services provider in Nigeria, has become the first corporation to list Sukuk Bonds on the stock exchange. The bank successfully raised over N11.4 billion through its N100 billion Sukuk Issue Programme and listed a N10 billion Mudarabah Sukuk issuance on the Nigerian Exchange Limited (NGX) trading floor.
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This Additional Tier 1 Capital Mudarabah Sukuk with loss-absorbency features is the first of its kind in Nigeria and is intended to help TAJ Bank improve its capital adequacy ratio and overall corporate business operations. The issuance attracted the interest of both retail and institutional investors, leading to an oversubscription of 113.6. This shows that Nigeria’s investment culture is still strong, and there is ongoing optimism about the country’s ability to achieve economic stability and recovery.
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The Chairman of TAJBank, Alhaji Tanko Gwamna, was present at the closing gong ceremony honouring the listing of the Sukuk issuance on the Exchange floor, along with other top bank officials. He reaffirmed that the listing is the first of its kind on the trading floor and is non-interest bearing. The capital market requires the listing of the Corporate Sukuk to provide liquidity and propel Nigeria’s economy forward.
Gwamna disclosed that the financial institution is considering investing in the manufacturing and Agriculture sectors with raised funds from the Sukuk. 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.”
The Managing Director/CEO, TAJBank, Mr. Hamid Joda, said the Sukuk listing aims to give Nigeria’s investors alternative means of investment. “Millions of investors have been yearning for non-interest or Islamic instruments. 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,” he added.
Joda also believes that with this move, TAJBank has inspired many other corporates in the financial space to come on board and issue Sukuk for the greater development of Nigeria. The financial institution plans to be back in the capital market soon to raise more funds.
