Nigeria, June 11 -- TAJBank, a non-interest bank in Nigeria, on Tuesday, signed a completion agreement for the second tranche of its N100 billion Sukuk bond programme.

According to a statement by the bank on Wednesday, it is aiming to raise N20 billion from the new issuance, nearly two years after it launched a N10 billion Sukuk bond in 2023, which was oversubscribed.

The new bond, approved by regulators, offers a 20.5 per cent return per year. It is structured as a Mudarabah Sukuk, a type of Islamic finance instrument where investors share in profits rather than earn interest.

Sukuk bonds are typically backed by assets or ventures and are designed to comply with Islamic financial principles. In Nigeria, the market for such instruments...