TAJ Bank, a non-interest lender, has announced the commencement of its N10 billion 15 percent Series 1 Sukuk issuance programme, which runs from Tuesday, September 20, 2022, and ends on September 28, 2022.
The offer for subscription is being made by TAJ SUKUK ISSUANCE PROGRAMME SPV PLC, a Special Purpose Vehicle created for the programme.
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It is being issued under TAJ’s N100m Sukuk Issuance Programme, the bank said in a statement on Tuesday.
The offer price is N1,000 per unknit, subject to a minimum of 100 units, and multiples of 50 units thereafter, the statement explained.
The Trust Sukuk Certificate to be issued to investors carries a perpetual tenor, but is callable after a minimum period of 5 Years, TAJ explained.
Proceeds from the offer will be used to beef up the Bank’s Tier 1 Capital, according to the statement. The profits will be shared in the ratio of TAJBank – 75% Trust Sukuk-holders – 25, it added.
“The Issue proceeds of the Sukuk will be remitted by the Issuer to the Mudarib (TAJBank) towards the Capital of the Mudarabah pursuant to the terms of the Mudarabah Agreement in a form which meets the requirement of Additional Tier 1 capital under the capital regulation and will be used by the Mudarib to support its Tier 1 capital for the purpose of maintaining its capital adequacy and for its general corporate business activities,” the Bank said.
The Profit will accrue from the date the issuer receives the Mudarabah capital contribution, according to the statement.
The Bank’s gross earnings rose from N56m in 2019 to N3.33b in 2020, and N7.24b last year. Profit before tax rose from a loss of N80m in 2019 to a gross profit of N297m in 2020, and N1.63b in 2021, according to figures provided by the Bank in the offer document.
