TAJBank Limited, Nigeria\u2019s foremost non-interest lender, says it has concluded plans to begin the issuance of its N100 billion Sukuk bond.<\/p>\n\n\n\n
This is according to a statement by TAJBank\u2019s Managing Director, Mr Hamid Joda.<\/p>\n\n\n\n
According to Joda, the commencement followed the signing of all parties for issuance of the first ever non-interest private Sukuk bond offer in the nation\u2019s capital market.<\/p>\n\n\n\n
He said that the bank had secured all regulatory approvals required for opening the Sukuk to the general public, adding that the bond would be listed on the Nigerian Exchange.<\/p>\n\n\n\n
Joda described the bank\u2019s latest investment initiative as a very important milestone in the annals of Nigeria\u2019s capital market development, while assuring investors of good returns on their investment in the TAJBank Sukuk bond.<\/p>\n\n\n\n
\u201cThe Sukuk bond issuance is a very important milestone in the history of Nigeria\u2019s capital market.<\/p>\n\n\n\n
\u201cI 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 deepening of the non-interest market and eventually economic development of Nigeria.<\/p>\n\n\n\n
\u201cMy message to the investing public is to take advantage of the opportunity in view of its potential for good returns,\u2019\u2019 he said.<\/p>\n\n\n\n
Joda said that the instrument was coming out at an expected rate of 15 per cent.<\/p>\n\n\n\n
\u201cIt is also an ethical instrument and there are very few ethical instruments out there and I believe a lot of investors are looking for instruments that have ethical leaning,\u201d he said.<\/p>\n\n\n\n
Also speaking, TAJBank\u2019s Executive Director, Mr Sheriff Idi, emphasised the importance of the Sukuk bond to the bank\u2019s operations.<\/p>\n\n\n\n
He said that TAJBank had capacity to provide financial support to needy enterprises with the attendant positive implications for the nation\u2019s economic growth.<\/p>\n\n\n\n
\u201cIn the last two years of the bank\u2019s operations, we have raised additional capital apart from the Sukuk we are issuing now.<\/p>\n\n\n\n
\u201cWith the Sukuk bond issuance, we wanted to raise TAJBank\u2019s capital base to about N30 billion by the end of the year.<\/p>\n\n\n\n
\u201cThat means we can now finance those sectors that probably some initially thought we cannot provide funding support. That is the essence of this Sukuk bond issuance,\u201d he said.<\/p>\n\n\n\n
Idi said that when the bank commenced business about two years ago, its capital base or finance obligor element was little, adding that it limited the bank\u2019s financial support to people and businesses.<\/p>\n\n\n\n
According to him, in view of the lender\u2019s improved capital base and other positive financial trajectory recorded over the last two years, TAJ Bank will be fully positioned to surpass public expectations.<\/p>\n\n\n\n
\u201cIt will ensure improved returns to shareholders and more positive impact on the economy.<\/p>\n\n\n\n
\u201cIn the last two years, we have raised additional capital apart from the Sukuk we are issuing now,\u2019\u2019 he said.<\/p>\n\n\n\n
The bank\u2019s Chairman, Alhaji Tanko Gwamna said that the Sukuk bond would benefit investors in multidimensional ways.<\/p>\n\n\n\n
According to him, the impact of the Sukuk bond on the economy is that we are trying to provide more liquidity for the economy and return on the investment is very favourable.<\/p>\n\n\n\n
\u201cWe are virtually competing even more than what is available in the market because its potential returns on investment is going to be very huge to investors.<\/p>\n\n\n\n
\u201cThe funds raised through the Sukuk bond and innovative deployment to needy sectors of the economy will help to create jobs and boost economic activities.<\/p>\n\n\n\n
\u201cIt will also improve the non-interest banking sub sector\u2019s contributions to the nation\u2019s Gross Domestic Product (GDP) growth in the years ahead,\u201d he said.<\/p>\n\n\n
TAJBank Limited, Nigeria\u2019s foremost non-interest lender, says it has concluded plans to begin the issuance of its N100 billion Sukuk bond. This is according to a statement by TAJBank\u2019s Managing Director, Mr Hamid Joda. According to Joda, the commencement followed the signing of all parties for issuance of the first ever non-interest private Sukuk bond […]<\/p>\n","protected":false},"author":2,"featured_media":1434,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[949],"tags":[654],"class_list":["post-44961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-sukuk","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n