The non-interest bank, TAJBank Limited, on Tuesday listed its Sukuk Bond on the floor of the Nigerian Exchange Limited (NGX).

Sukuk, commonly referred to as Islamic Bonds, is a non-interest-bearing bond.

It has helped government diversify its sources of funding while offering ethical investors an opportunity to invest in government-issued securities.

The instrument has also served as a reference for pricing Sukuk issued by other bodies, especially the private sector.

The bank 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 N113.6 billion.

The Chairman of the TAJBank Board, Alhaji Tanko Gwamna, said that the oversubscription of the Sukuk issuance demonstrated that investment culture in Nigeria was still vibrant.

The oversubscription of the bond, according to him, showed a sustained confidence in Nigeria’s path to economic recovery and stability.

Gwamna said that the listing was the first of its kind on the trading floor and with non-interest bearing.

He said that the capital market needed the listing to enhance liquidity and further grow Nigeria’s economy.

He disclosed that the bank was considering investing in the manufacturing and agriculture sectors with Sukuk proceeds.

“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,” Gwamna said.

He declared that TAJBank is setting the trend and 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.

“Soon, we will be back in the capital market to raise more funds,” he said.

Also speaking, TAJBank’s Managing Director, Mr. Hamid Joda, said that the aim of the Sukuk listing was to give Nigerian investors alternative means of investment.

According to Joda, millions of investors have been yearning for non-interest or Islamic instrument and the bank believes it is an opportunity for them it to invest in such an instrument.

“The funds raised will be deployed into sectors that create jobs in Nigeria’s economy and in that way, it will have high-impact opportunities for millions of Nigerians.

“I believe with this move, we have inspired many other corporates in the financial space to come on board and issue Sukuk for greater development of our dear country,” he said.

The Divisional Head, Capital Markets, NGX, Mr. Jude Chiemeka. commended the efforts of TajBank’s leadership and other parties to the issue.

“NGX will continue to support issuers by providing a platform of choice for capital raising and linking them with a diverse pool of investors.

“The Exchange is also committed to the development of Islamic financing in the Nigerian capital market and continues to implement initiatives to deepen its offerings,” he said.