Non-interest financial institution TAJBank has signed the completion agreement for the second tranche of its N100 billion Mudarabah Sukuk bond programme, valued at N20 billion. The agreement was formally concluded on Tuesday, June 11, at the bank’s corporate headquarters in Abuja.
This follows the bank’s successful issuance of Nigeria’s first N10 billion Sukuk bond listed on the Nigerian Exchange (NGX) in February 2023, which was oversubscribed by more than 115 per cent—an achievement that set a strong precedent for non-interest investment instruments in Nigeria’s capital market.
The latest N20 billion Sukuk issuance, structured under the Islamic finance principle of Mudarabah (a profit-sharing partnership), offers a competitive 20.5% per annum return. It is open to a wide pool of investors, including individuals and corporate bodies seeking ethical, interest-free, and profitable investment opportunities.
Speaking at the signing event, Chairman of TAJBank, Alhaji Tanko Gwamna, described the offering as part of the bank’s long-term strategy to deepen investor participation in Nigeria’s non-interest capital market and to empower wealth-building through ethical financing.
Gwamna stated, “As the Board and Management of TAJBank demonstrated in our maiden Sukuk, this new N20 billion issuance allows a wider range of investors to partake in our growth journey. The profit-sharing structure ensures transparency and shared success.”
He encouraged interested investors to seek advice from licensed financial advisors for detailed information on the Sukuk offering and the listing process on the Nigerian Exchange.
The Mudarabah Sukuk has already secured all necessary approvals from relevant regulators, including the Securities and Exchange Commission (SEC), highlighting its credibility and compliance with both financial and Islamic finance regulations.
Also present at the ceremony was Mr Kayode Fadahunsi, CEO of AVA Capital Ltd—the lead issuing house for the Sukuk. He expressed confidence in the success of the second tranche, citing the strong performance and investor returns from the bank’s maiden Sukuk.
“We are proud to work alongside TAJBank on this landmark issuance. Investors can expect not just strong returns, but a commitment to ethical values and sustainability,” Fadahunsi remarked.
He also assured stakeholders that the issuance process would uphold the same transparency and diligence that guided the first bond, which gained wide investor confidence and market traction.
Investment analysts have described the N20 billion Sukuk, with its 20.5% yield, as one of the most attractive offerings in Nigeria’s fixed-income space. Many believe it offers a unique opportunity to diversify portfolios, particularly for investors seeking sharia-compliant options or alternatives to traditional interest-based instruments.
In line with Islamic financial principles, Sukuk bonds do not accrue interest (riba) but instead operate on profit-sharing or leasing structures. The Mudarabah model used by TAJBank allows investors to provide capital to the bank, which then deploys it in pre-agreed ventures. Profits generated are then shared between the bank and investors based on a predefined ratio.
This type of financing has grown in popularity, especially among faith-driven investors and institutions seeking socially responsible instruments.
TAJBank’s Managing Director and founder, Mr Hamid Joda, had earlier affirmed during the listing of the first tranche in 2023 that the Sukuk issuance would consistently provide stable returns for investors. That first tranche was a resounding success, reflecting strong investor confidence in TAJBank’s business model and non-interest banking in general.
The new tranche of the Mudarabah Sukuk continues to reflect the bank’s commitment to financial inclusion, ethical investing, and innovative funding models that serve Nigeria’s growing Islamic finance market.
As part of the next steps, TAJBank will proceed with the official listing of the N20 billion bond on the Nigerian Exchange in the coming weeks, further expanding investor access and improving market liquidity.
