Nigeria, Oct. 10 -- TAJBank Limited's N20 billion Sukuk bond, offered earlier this year with a 20.5 per cent return per year, has recorded an oversubscription of 185.2 per cent, the institution disclosed on Friday, underscoring growing investor confidence in the Nigerian non-interest banking sector.

The transaction, the second tranche of the bank's N100 billion Sukuk programme, which debuted nearly two years ago when the N10 billion offered attracted considerable interest from investors, rode on that earlier success.

The Mudarabah Sukuk recorded allotments totalling N57 billion, TAJBank said in a statement. Mudabarah, in Islamic banking, is an arrangement whereby one party provides capital, while the other invests it with an agreement f...