- The NMB Bond offer is open for purchase to NMB and non-NMB customers starting from TZS 500,000

- The NMB Retail offer can be bought from any NMB Branch or bond brokers

Dar es Salaam, May 9, 2016….National Microfinance Bank Plc (NMB) is issuing a 13% interest bond aimed at everyone who wishes to invest in NMB and earn an attractive return. This is the first such bond to be issued by NMB and can be bought from any NMB branch or selected bond brokers with a minimum purchase of TZS 500,000 (Five Hundred Thousand Tanzanian Shillings).This move is a result of the Capital Markets & Securities Authority (CMSA) granting approval to issue the first tranche of the NMB Plc Medium Term Note (MTN) Programme. Investors in the NMB Retail Bond will earn an interest rate of 13% per annum payable half yearly for its term of three years, until June 2019; the interest rate paid is subject to withholding tax. An NMB bond is tradable, so you can sell the bond to another buyer and receive the principal before the maturity date. Investors can sell the bond before maturity on the open market through a stockbroker – in accordance with the Dar es Salaam Stock Exchange rules.

Ms. Ineke Bussemaker, Managing Director of NMB commented: “NMB is principally funded by retail deposits but there are other attractive funding options, with the NMB Retail Bond we are looking to raise TZS 20BN with a green shoe option of TZS 5BN. Many investors have shown interest about investing in high quality bonds and we consider this to be a good opportunity to satisfy this need which will help stimulate the development of the local capital market and diversify our funding sources. An opportunity that allows us to mobilise funds that the bank can use to create new customer loans at favourable rates.”

Mr. Patrick Masusa, Dar es Salaam Stock Exchange- Project Manager for Business Development,said: "We are delighted to welcome NMB as a new issuer on our Order book for retail Bonds. This is very stimulating for the market to see such a high profile name continuing the expansion to the range of bonds available. The NMB Retail Bonds are special for they are open for buy to the general public and can be purchased from NMB’s largest network of branches across the country, and with the support of issuers like NMB we look forward to growing the service further in the months and years ahead."

At the opening, The Capital Market and Securities Authority (CMSA) CEO Mrs. Massinda, said the NBM bond is expected to facilitate the development of a vibrant retail market in the country, she said. Further she added that this type of a bond provides opportunities to small investors to invest in bonds in lower denomination, diversify their investments and trade in the bonds market thus providing needed inclusion and access using the bank’s easily accessible network.

The NMB Retail Bond will on offer starting on 10th May 2016 to 8th June 2016 and interest will accrue from this date. Applications for the NMB Bond may be made via any of the 175 NMB branches or appointed bond brokers.