TAJBank to debut N100bn private sector Sukuk bond

TAJBank Limited, a non-interest bank, is set to launch Nigeria’s first private sector Sukuk offering under a N100 billion programme.

This will be the first private sector Sukuk after several series Sukuk issued by the federal government, especially for road infrastructure through the Debt Management Office (DMO). 

According to a statement from the bank on Sunday, the Sukuk offering, which is currently undergoing regulatory approvals, would make a historic shift from government-dominated Sukuk offerings to a fully private sector-oriented offering in the Nigerian debt market.

TAJBank said it was launching the instrument under a Mudaraba structure that would afford the non-interest lender an opportunity to grow its capital base. The bank’s board said the Sukuk would be offered in tranches of N10bn each after it secured the regulatory approvals.

Commenting on the corporate Sukuk offering in Abuja, the bank’s Managing Director/CEO, Mr Hamid Joda, explained that, “TAJBank’s Sukuk offer, being the first private sector Sukuk offer in Nigeria, would open the door for several Sukuk offers by other private sector entities thereby stimulating investments in critical sectors of the economy, leading to national development.

“Our aim is to raise the needed funds that would be invested in targeted high-impact sectors that spur job creation and enhance the standard of living of Nigerians.”

The Executive Director of TAJBank, Mr Sherif Idi, said, “There are many economic activities or projects that well-meaning Nigerians and companies are unable to fund. The Sukuk is a perfect way of aiding to finance these projects.

He further stated that the use of the Sukuk to fund these projects meant that investors were incentivised to help the economy develop by creating and producing rather than consuming only.”