NMB Bank Plc (NMB) is issuing a 10% interest bond which targets everyone who wishes to invest in NMB and earn an attractive return.

This is the second 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) only.

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 10% per annum payable quarterly for its term of three years, until June 2022; 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

NMB Managing Director Albert Jonkergouw 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 25BN with a green shoe option of TZS 15BN.

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.”

“The NMB Retail Bonds are special for they are open to the general public for buying and can be purchased from NMB’s largest network of branches across the country.” 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 be on offer starting on 10th June 2019 to 8th July 2019 and interest will accrue from this date. Applications for the NMB Bond may be made via any of the 229 NMB branches or appointed bond brokers.