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TAJBank Announces Issuance of N150 Billion Naira FGN Sukuk

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  • 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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

CBN Maintains 11.5 Percent Monetary Policy Rate, Leaves Other Ratios Unchanged

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The Central Bank of Nigeria led Monetary Policy Committee (MPC) has left the interest rate unchanged at 11.5 percent to further stimulate activities in the real sector of the economy.

Godwin Emefiele, the Governor of Central Bank of Nigeria disclosed this at the end of the MPC meeting on Tuesday in Abuja.

He said other parameters, the Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor, were left unchanged.

According to the Governor, the committee voted unanimously to maintain the current monetary policy and attributed the surge in inflation to structural policies, the increase in pump price and the recent #EndSARS protest.

Highlights of CBN-MPC’s  Decision

  • MPR was kept at 11.50%
  • The asymmetric corridor of +100/-700 basis points around the MPR
  • CRR was retained at 27.5%
  • Liquid Ratio was also kept at 30%

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Unity Bank Grew Gross Earnings by 8 Percent to N34 Billion in Nine Months

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Unity Bank Plc grew gross earnings by 8 percent despite COVID-19 and other headwinds that hurt the profitability of most businesses in the first nine months of the year.

A break down of the bank’s unaudited financial results for the period showed gross earnings rose by 8 percent to N33.91 billion for the nine months ended September 30, 2020, up from N31.26 billion posted in the same period of last year.

The lender’s total assets rose by 44 percent from N293.05 billion in the corresponding period of 2019 to N420.87 billion in the period under review.

Unity Bank grew profit before tax from N1.61 billion in 2019 to N1.71 billion in the period under review, while profit after tax expanded from N1.48 billion in the corresponding period to N1.57 billion in 2020.

Customers’ deposits stood at N332.36 billion during the period under review, up from N257.69 billion posted in 2019.

Commenting on the performance, Mrs. Tomi Somefun, the Managing Director/Chief Executive Officer, Unity Bank Plc, expressed delight at the strong growth recorded across the bank’s balance sheet, especially from both the liability and assets side of the business and across key indices.

She said, “even as the bank continues to innovate in its e-business product bouquet to target and support value chain business with robust technology and thus diversify its earnings base.”

Somefun said, “One of the areas that will define our strategic direction going forward is investment in alternative channels, leveraging further deployment of resources in technology.

“COVID-19 gave us a chance to test the integrity and scalability of our technology, the IT infrastructure, and the electronic banking channels, and provided us an opportunity to see where we needed to improve and strengthen, knowing that the future of sustainable banking business is in alternative channels.”

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Financial Sector Grew by 6.8 Percent in the Third Quarter

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The finance and insurance sector that comprises of both the financial institutions and insurance subsectors grew by 5.91 percent year-on-year in nominal terms in the third quarter (Q3).

According to the National Bureau of Statistics (NBS) latest report, the financial institutions’ subsector accounted for 88.89 percent of the sector in real terms in the quarter under review while the insurance subsector contributed the remaining 11.11 percent.

During the third quarter of 2020, the financial institutions’ subsector grew by 6.8 percent in Q3 2020 from 28.41 percent in Q2 2020 and 0.61 percent in Q3 2019 despite COVID-19 and a tough operating environment. The insurance subsector, however, contracted by -18.67 percent in Q3 2020 from -29.53 percent in Q2 2020 and 3.96 percent in Q3 2019.

On a quarterly basis, the sector declined by 24.76 percent.

In terms of contribution to GDP, the finance and insurance sector contributed 2.46 percent in Q3 2020, higher than the 2.40 percent it represented a year ago and lower than the contribution of 3.76 percent achieved in the previous quarter.

The economy contracted by 3.62 percent in the third quarter following a 6.10 percent decline posted in the second quarter. Nigeria is officially in the second economic recession in four years.

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