NMB Bank successfully raised an impressive 400 billion TZS through the sale of its dual-tranche Jamii Bond, marking a significant milestone as the bond was listed for trading on the Dar es Salaam Stock Exchange (DSE), one of the first in Africa.
The primary objective of the funds raised is to support climate, social, and environmentally-focused projects. These projects aim to enhance resilience against climate change, contribute to sustainable infrastructure, and promote the efficient and sustainable use of natural resources.
This initiative by NMB Bank aligns with President Samia Suluhu Hassan’s commitment to attract social and environmental investments into the country, particularly to aid climate change mitigation efforts. President Samia emphasized this agenda at the Conference of the Parties (COP 28) in Dubai, urging the global community to provide accessible and predictable financing for climate adaptation, especially for developing countries.
Under President Samia’s leadership, Tanzania advocates for clean cooking energy and seeks global support for this cause. The success of NMB Bank’s Jamii Bond reflects the unprecedented response from investors, supporting environmental and social objectives.
Professor Kitila Mkumbo, the Minister of State in the President’s Office (Planning and Investment), commended NMB Bank’s initiative during the listing of NMB Jamii Bond on DSE. He highlighted how such financial endeavors contribute to national building efforts by advancing financial inclusion and attracting quality investments. Professor Mkumbo emphasized the broader impact, stating that initiatives like NMB Jamii Bond play a vital role in foreign direct investment and improving the supply of dollars in the economy.
Ruth Zaipuna, NMB’s Chief Executive Officer, expressed pride in the phenomenal success of the three-year sustainability bond, which received overwhelming support from local retail investors and offshore impact financiers, surpassing the initial approval by the Capital Markets and Securities Authorities (CMSA) by more than three times.
The TZS tranche of the bond achieved a remarkable 284% subscription level, mobilizing 212.9 billion TZS against the targeted 75 billion TZS. Simultaneously, the USD tranche witnessed a staggering 730% subscription, fetching 73 million US dollars from the initial target of 10 million US dollars.
Zaipuna revealed that the net proceeds from the Jamii Bond would be channeled into financing activities aligned with the bank’s updated Sustainability Financing Framework. The oversubscription of the bond showcases the vibrancy of the local capital markets and signifies growing support for sustainable finance in the country.
Nicodemus Mkama, CMSA’s Chief Executive Officer, highlighted that the bond significantly increased the value of corporate bonds in the capital markets, reflecting the growing confidence of investors. The success of the bond issuance underscores the safety, sustainability, and attractiveness of Tanzania’s capital markets, meeting the demands of both local and foreign investors.
The listing of NMB Jamii Bond on the DSE marks the 28th corporate bond from 15 entities since 1999. Furthermore, it is the third sustainability security listed locally, reflecting the country’s increasing appetite for green financing and its commitment to sustainable development. NMB Bank’s Jamii Bond success signals a new era for sustainable finance in Tanzania, demonstrating the positive impact that strategic financial initiatives can have on national development goals.
