NOW OPEN!!! TAJ SUKUK ISSUANCE PROGRAMME SPV PLC’S UP TO ₦10 BILLION MUDARABAH SUKUK ISSUANCE SPONSORED BY TAJ BANK LIMITED

Greenwich Merchant Bank Limited is pleased to announce that the Taj Sukuk Issuance Programme SPV Plc’s (the “Company” or the “Issuer”) up to ₦10 billion Series 1 Mudarabah Sukuk Issuance (‘’the Issuance” or ‘’the Offer”) – under its ₦100 Billion Sukuk Issuance Programme is NOW OPEN.

The Sponsor, TAJBank Limited (“TAJBank”) is a licensed national Non-Interest Bank domiciled and operating in Nigeria. TAJBank was formerly a regional bank having  secured its banking license from the Central Bank of Nigeria on July 3, 2019 and commenced operations on December 2, 2019 with two pioneering branches. As a non-interest Bank with the strategic intent of providing excellent services through technology and digital innovation, the Bank focuses on building a powerful brand as a Deposit Money Bank with solutions and competences in Non-Interest Banking while adopting sustainably ethical Conventional Banking products and services.

From inception, the Bank has demonstrated immense appetite for growth and innovation, rendering exceptional quality services to customers and nurturing a well-motivated workforce. In this period, the Bank secured licenses for major critical banking products – Letter of Credit Dealership and Foreign Exchange, among others. The strategic commitment of the Bank is to be among the dominant Non-interest Banks operating in Nigeria with 75% Market Share and comprehensive Non-Interest Banking products and services.

This issuance is a Shariah Compliant Sukuk structure for raising additional Tier-1 Capital which will be invested in projects with shared ownership by the Bank and Trust Sukukholders.

Please find set out below the indicative terms of the proposed Offer:  

Issuer:Taj Sukuk Issuance Programme SPV Plc
Sponsor/Originator:TAJBank Limited
Lead Issuing House:Greenwich Merchant Bank Limited
Joint Issuing Houses:Ava Capital Partners Limited Finmal Finance Services Limited Tiddo Securities Limited
Shari’ah Advisers:Buraq Capital Limited One17 Capital Limited
Trustees:FBNQuest Trustees Limited
Registrars:Apel Capital Registrars Limited
Stockbrokers:United Capital Securities Limited
Sponsor RatingBBb  (Augusto & Co.)BBB (Datapro)
Issue RatingBbb- (Augusto & Co.)BBB+ (Datapro)
Sukuk Contract:Mudarabah Sukuk Contract
Description:15% Series 1 Mudarabah Sukuk Issuance
Description of Sukuk:Additional Tier-1 Capital Mudarabah Sukuk with loss-absorbency features
Programme Size:N100,000,000,000.00 (One Hundred Billion Naira)
Series Number:1
Series Size:Up to N10,000,000,000.00
Issue Price:At Par (N1,000 per unit of the Sukuk Certificate)
Projected Profit to Sukuk-holders:15% per annum
Tenor:The Trust Sukuk Certificate is perpetual, but callable after a minimum period of 5 Years
Currency:Naira (N)
Denomination(s):N1,000 per unit subject to a minimum subscription of 100 units and multiples of 50 units thereafter
Offer Opens:September 20, 2022
Offer Closes:October 28, 2022
Profit Sharing Ratio:TAJBank – 75% Trust Sukukholders – 25%
Use of Proceeds:The Issue Proceeds of the Sukuk will be remitted by the Issuer to the Mudarib (TAJBank) towards the Capital of the Mudarabah pursuant to the terms of the Mudarabah Agreement in a form which meets the requirement of Additional Tier-1 Capital under the capital regulation and will be used by the Mudarib to support its Tier-1 capital for the purpose of maintaining its capital adequacy and for its general corporate business activities
Method of Distribution:Fixed price offer for subscription
Listing(s)/Quotation:The Sukuk Certificates will be listed on the Nigerian Exchange Limited and/or FMDQ Securities Exchange Plc
Redemption Basis:On Call Date at fair value of Trust Assets
Governing Law:Nigerian Law and relevant principles of Islamic Commercial Law (Mu’amalat Maliyyah)
Selling Restrictions:The Sukuk Certificates will be sold to Qualified Institutional Investors, High Net Worth Investors (HNIs) and Retail Investors in line with the SEC rules and regulation. There are no selling restrictions

The supporting Offer documents can be accessed via this  link for your review and consideration.

  1. Shelf Prospectus
  2. Series 1 Supplementary Prospectus
  3. Mudarabah Agreement
  4. Shari’ah Advisory Services Agreement
  5. Programme Trust Deed
  6. Series 1 Trust Deed
  7. Rating Reports
  8. Shariah Compliance Certificate
  9. Subscription Form

For further inquiries, please do not hesitate to contact the undersigned.

Kenneth EroKemi AdetonaOladipo Olakunle-Jinadu
 [email protected][email protected] [email protected]
 0805 700 19250815 171 1272 0815 428 4494

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