TAJBank announces N150b Fed Govt Sukuk Bond Issuance

TAJBank, a non–Interest financial institution, has announced a N150 billion Sukuk Bond of the Federal Government of Nigeria

The founder/Chief Operating Officer TAJBank, Hamid Joda, said:  “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.”

TAJBank Chief Marketing Officer, Sherif Idi, said it was 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,” he said.

The FGN Sukuk 2020 is open to investors, which include retail investors. high networth 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 firms.

Sukuk, also referred to as Sharia compliant bonds, is developed as an alternative to conventional bonds. It 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 tool to help countries and businesses develop sources of long-term, stable financing.

Book building commenced on May 21 while funding would be on June 2.

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