Nigerian Exchange Limited (NGX) has admitted TajBank Limited’s N10bn Sukuk Mudarabah in its drive to further deepen the capital market.
In commemoration of the listing of TajBank’s N10bn 15 percent Series 1 Sukuk Mudarabah bond on its Exchange, NGX held a closing gong ceremony on Tuesday, 14 February 2023. TajBank operates in Nigeria under Islamic banking principles and as a non-interest bank. The Bank recently raised N10billion through a Sukuk Mudarabah Program that has both features of Equity and Debt.
The N10billion Sukuk Mudarabah Issuance is an additional Tier 1 Capital with loss-absorbency and a first of its kind in Nigeria which is being raised under the TajBank N100billion Sukuk Mudarabah Program aimed at strengthening the bank’s capital adequacy ratio.
Speaking at the ceremony, the Divisional Head, Capital Markets, NGX, Mr. Jude Chiemeka commended the efforts of TajBank’s leadership and the parties to the issue: Greenwich Merchant Bank, Lead Issuing House; 117 Capital & Buraq Capital, Joint Sharia Advisers; and United Capital, Brokers, on the transaction. “NGX will continue to support issuers by providing a platform of choice for capital raising and linking them with a diverse pool of investors. The Exchange is also committed to the development of Islamic financing in the Nigerian capital market and continues to implement initiatives to deepen its offerings.”
The Chief Executive Officer, TajBank, Hamid Joda reiterated the strategic importance of Islamic financing and how it can drive national development. He also thanked NGX for its support and pledged to continue to collaborate with the Exchange for the development of Islamic finance in the country.
The Sukuk bond issuance by TAJ Bank is a very important milestone in the history of Nigeria’s capital market. “I believe that after this issuance, we will see a number of companies in the Nigerian market coming out to issue Sukuk bonds and that will lead to the deepening of the non-interest market and eventually economic development of Nigeria” he added.