Rating Release

Agusto & Co. affirms the ‘Bbb+’ rating assigned to TAJBank Sukuk Issuance Programme SPV Plc’s Perpetual Series 1 ₦11.4 billion Mudarabah Sukuk, with a stable outlook 

The rating expires on 24 July 2027.

Agusto & Co. affirms the “Bbb+” rating assigned to TAJBank Sukuk Issuance Programme SPV Plc’s (“the Issuer”) Perpetual Series 1 ₦11.4 billion Mudarabah Sukuk (“the Issue” or “the Sukuk”), reflecting adequate capacity to meet all associated obligations. The Issuer is a non-operating entity incorporated for raising qualifying debt instruments on behalf of TAJBank Limited (“the Bank” or “the Sponsor” or “TAJBank”). The proceeds of the Issue were invested in a perpetual sukuk issued by the Sponsor, and thus, the obligations under the Issue were fully guaranteed by TAJBank Limited. The Sukuk’s rating is a notch below the “A-” rating assigned to TAJBank by Agusto & Co., given the subordinated status of the associated obligations, relative to other senior debt obligations of the Bank. The rating is hinged on the Sponsor’s leading position in the non-interest banking segment, the improving deposit mix, good capitalisation and strong liquidity coverage for the Sukuk obligations. However, the rating is constrained by the obligor concentration in the financing portfolio and the increasing volume of strained (stage 2 and stage 3 financing) contract.