TAJBank Limited yesterday on the trading floor of the Nigerian Exchange Limited (NGX) became the first corporate to list Sukuk Bond on the bourse.
The fast-growing non-interest ban listed N10 billion Mudarabah Sukuk issuance after it successfully raised over N11.4 billion under its N100 Billion Sukuk Issuance Programme.
The issuance received interest from both retail and institutional investors, resulting in a subscription of 113.6.
The oversubscription of the issuance demonstrates that the investment culture in the Country is still vibrant and there is sustained confidence in Nigeria’s path to economic recovery and stability.
Speaking at the closing gong ceremony in commemoration of the listing of the Sukuk issuance, the chairman of TAJBank, Mr. Tanko Gwamna, said the listing is the first of its kind on the trading floor and it comes with non-interest bearing.
He noted that the listing of the Corporate Sukuk is what the capital market needs to enhance liquidity and further grow Nigeria’s economy.
Gwamna disclosed that the bank was considering investing in the manufacturing and Agriculture sectors with raised funds from the Sukuk.
“Manufacturing sector is the only sector that can take most of the youth out of the street and keep them engaged. Also, we are funding agriculture production and its value chain from start to finish. These two sectors are where we wanted to fund the Sukuk issuance.
“The listing on the Exchange is for investors to trade in the Sukuk and diversify their investment.
“We are setting the trend and I’m sure a lot of corporates will come along. We are making more offerings because the market is in need of corporate Sukuk. It was a transparent exercise and people can trade with our Sukuk and it will offer more liquidity for economic growth,” he said.
Gwamna also stated that the bank would be back again in the capital market to raise more funds.
Also speaking, the MD/CEO of the bank, Mr. Hamid Joda said the aim of the Sukuk listing is to give Nigeria’s investors alternative means of investment.
“Millions of investors have been yearning for non-interest or Islamic instrument. We believe this is an opportunity for them to invest in such an instrument.
“The funds raised will be deployed into high-impact sectors that create jobs in Nigeria’s economy and in that way, it will have high-impact opportunities for millions of Nigerians,” he said.
