Jaiz Bank secures $20 million equity investment from Saudi Arabia’s ICD

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Jaiz Bank, the pioneer of Islamic banking in Nigeria, will commit the fund to business endeavours targeting regional expansion through ICD’s partnership

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The investment agreement adds Mudarabah tier 1 capital to the bank’s core capital, and puts it on course to strengthen its suite of ethical finance offerings, including auto, household appliance and home finance, among others. Whether you turn to Premium Times for daily updates, in-depth investigations into pressing national issues, or entertaining trending stories, we value your readership.

He was alluding to the directive weeks back from the CBN asking non-interest banks to scale their minimum capital up to N20 billion by March 2026 from a current threshold of N10 billion. The facility, called Murabaha finance under Islamic law, empowers a financial institution to facilitate the purchase of an asset for a buyer and ultimately earn a profit rather than charge interest, which Islamic finance forbids.

FCMB holds a commercial banking license with international authorisation, meaning it is expected to have raised its capital base to N500 billion by that deadline from the current N50 billion. The new capital requirement does not allow for the inclusion of shareholders’ fund.When asked about Jaiz Bank’s planned transformation into a holding company, which has been stalled for a while, Mr Musa told PREMIUM TIMES that its bank would revisit its application to the CBN any time soon.

 

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