TAJBank Limited has announced that its recent ₦20 billion Mudarabah Sukuk issuance was oversubscribed by an impressive 185.15%, attracting a total of ₦57.03 billion from investors. The offering marks the second tranche under the bank’s ₦100 billion Sukuk bond programme.
The Sukuk carries an annual profit rate of 20.5%, a factor that significantly boosted investor demand. This strong response highlights the growing confidence in TAJBank’s non-interest banking model and its consistent delivery of innovative financial products.
Hamid Joda, the Founder and Managing Director of TAJBank, attributed the success of the Sukuk issuance to the unwavering trust of investors despite current economic challenges. He reaffirmed the bank’s commitment to providing value and maintaining transparency in all its dealings.
In the same vein, Co-Founder and Executive Director, Sherif Idi, said the oversubscription is a reflection of the confidence investors have in TAJBank’s ethical finance model. He assured that the bank will continue to uphold the principles of excellence and integrity that have defined its growth so far.
Since entering Nigeria’s non-interest banking space about five years ago, TAJBank has consistently led the charge in promoting Shariah-compliant finance. Its first Sukuk issuance in 2023, valued at ₦10 billion, was also oversubscribed by 115%, marking a milestone in Nigeria’s Islamic finance history. The latest issuance builds on that success and demonstrates the growing acceptance of ethical finance instruments in the country, especially as investors continue to seek stable and value-driven alternatives amid fluctuating economic conditions.
The performance of TAJBank’s Sukuk reflects a broader trend in Nigeria’s financial landscape. With increasing interest in ethical and faith-based investment options, the success of this issuance could inspire other institutions to explore similar funding instruments. As Fitch Ratings projects continued growth in Nigeria’s Islamic finance sector through 2025 and beyond, TAJBank’s achievement reinforces its position as a major player in shaping the future of non-interest banking in the country.