- TAJBank Announces Issuance of N150 Billion Naira FGN Sukuk
TAJBank, Nigeria’s most innovative Non–Interest financial institution has announced a 150 million naira Sukuk Bond as appointed by the Federal Government of Nigeria.
This will be the first time that the Bank will be acting in the capacity of a Receiving Agent since its’ opening for operations on December 2nd 2020.
The Founder/Chief Operating Officer TAJBank, Mr Hamid Joda 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.
Chief Marketing Officer TAJBank, Mr Sherif Idi also stated that, “It is important to understand the principles which guide Sukuk. These principles are what makes 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.
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 provide 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.
Book building commences 21st May 2020 while funding will be on 2nd June 2020.
