NMB Bank today listed a TZS 41.4bn 3 year bond on the Dar es Salaam Stock Exchange (DSE).
The listing ceremony was graced by Permanent Secretary of Ministry of Industry, Trade and Investment – Dr. Adelhelm Meru, who hailed the listing and urged other investors in the private sector to join.
“This retail bond is expected to facilitate development of a vibrant retail bond market and open doors for other private sector companies, government companies and municipal bodies to explore new methods to meet financing needs,” he said.
Speaking at the ceremony, Ms. Ineke Bussemaker, Managing Director for NMB said: “The three year bond was not only a major development in the sector but also in the retail market, as NMB became the first bank to over subscribe by over double the initial target.”
Ms. Bussemaker further added that the overwhelming response to the NMB bond reinforces the need for banks to play a bigger role in developing the local capital markets as well as promoting financial inclusion.
The listed bond carries an interest rate of 13 per cent per annum and is set to mature in three years.
The retail bond received an overwhelmingly positive response from investors and was oversubscribed by 107%. The bank received 1,811 applications worth TZS 41.4 billion with applications surging in the last week of the offer.
The issuance of the bond was part of NMB’s strategy to diversify its funding sources. The proceeds of the bond issue will be used for on-lending to the bank’s customers who include individuals, micro, small and medium sized enterprises as well as large corporates and Government institutions.
Following the listing, investors will be able to trade their bonds on the DSE.
Stanbic Bank Tanzania Ltd. was the lead arranger for this bond issuance whilst Orbit Securities Ltd. and EA Capital Ltd were the lead placing agents.
For enquiries contact:
Joseline Kamuhanda, Senior Manager Corporate Affairs and Public Relations
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Anna Mwasha, Investor Relations Manager
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
