TAJBank announces issuance of N150bn FGN Sukuk

TAJBank, Nigeria’s non-interest financial institution, has announced a N150 billion Sukuk Bond as appointed by the Federal Government of Nigeria, making it the first time the bank will be acting in the capacity of a Receiving Agent since its opening for operations on December 2, 2019.

Hamid Joda, founder/chief operating officer, TAJBank, affirmed, “We are delighted to be appointed as a Receiving Bank for FGN Sukuk by the Federal Government. This investment platform is a safe and risk-free form of investment and offers a stable, tax free, rental income stream. There are enormous benefits derived from regular Sukuk issuance programmes like these to the economy, as it will secure much-needed capital to boost infrastructural development spanning several sectors such as health, transportation and much more.”

Sherif Idi, chief marketing officer, TAJBank, also stated, “It is important to understand the principles which guide Sukuk. These principles are what make this platform so attractive to investors. One of such attractive features is that the holder has an undivided ownership right in a particular asset and as such is entitled to the return generated by that asset. As such, this provides an opportunity for all to invest safely and enjoy the attractive benefits of a triple A rated ethical instrument.”

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The FGN Sukuk 2020 is open to all categories of investors, which include retail investors, high net-worth individuals, institutional investors such as commercial banks, insurance /takaful companies, pension fund administrators, asset managers, ethically inclined investors, cooperative societies, religious bodies as well as state investment companies.

Sukuk is also commonly referred to as Sharia compliant bonds and is developed as an alternative to conventional bonds. Sukuk provides an alternative long-term financing for key sectors such as infrastructure. Considering the state of the economy and infrastructural challenges, and as several countries grapple with the economic impact of COVID-19, Sukuk is a veritable tool to help countries and businesses develop sources of long-term, stable financing. However, the book building commenced May 21, while funding will be on June 2, 2020.

TAJBank is Nigeria’s second non-interest financial institution, with head office in Abuja and branches at the National Assembly Complex and Kano State.

The bank received its licence from the Central Bank of Nigeria on July 12, 2019, offering an exciting array of products and services that span private banking, retail banking, business banking, development finance and the public sector.

The bank has major plans to expand across the country.