Tanzania raises Sh263 billion through first offshore bond listed in London

The $100 million (about Sh262.5 billion) bond was issued by the International Finance Corporation (IFC), a member of the World Bank Group, and marks the first offshore bond denominated in Tanzanian shillings to be listed on the exchange.

The proceeds have been lent to NMB Bank Plc to expand financing for micro, small and medium-sized enterprises (MSMEs).

Twenty percent of the funds, equivalent to about Sh52.5 billion, has been earmarked to support women-owned businesses.

Speaking after ringing the ceremonial bell to mark the bond’s listing and the close of trading, Finance Minister Ambassador Khamis Mussa Omar said the achievement marked a new chapter in Tanzania’s efforts to deepen access to international capital markets and mobilise long-term financing for the implementation of Vision 2050.

“This is an important step in Tanzania’s journey towards participating more actively in global capital markets using our own currency. The listing demonstrates growing confidence among international financial institutions in our economy and the ongoing reforms in the financial sector,” he said.

Ambassador Omar said listing the bond on one of the world’s leading stock exchanges would enhance Tanzania’s reputation among international investors and strengthen the country’s ability to access financing on more favourable terms.

“Our objective is not only to ensure the success of this bond in international markets but also to deliver tangible benefits to the private sector, particularly MSMEs, which remain the backbone of our economy,” he added.

NMB Bank Plc Chief Executive Officer Ruth Zaipuna welcomed the milestone, saying the funding would enable the bank to extend long-term financing to small and medium-sized businesses, boosting private sector growth, job creation and productive economic activity.

“This is the second time our bank has benefited from the London Stock Exchange. In 2023, we raised more than Sh400 billion through a social bond, and we have now secured more than Sh262.5 billion through the first offshore bond listed in Tanzanian shillings,” she said.

World Bank Vice President and Treasurer Jorge Familiar said the institution was proud to support Tanzania’s efforts to achieve inclusive economic growth under the country’s Vision 2050.

“Our focus is not only on the amount of financing we provide with our partners but also on the impact of that investment. We expect this financing to generate significant economic and social benefits, creating between 13,000 and 20,000 jobs, including for women, while giving international investors an opportunity to support Tanzanian businesses,” he said.

The listing is regarded as a strategic milestone that strengthens Tanzania’s position in global financial markets while supporting the country’s drive for inclusive and sustainable economic growth.

Through the IFC, the World Bank the World Bank Group has invested more than $1.6 billion in Tanzania across strategic sectors, including infrastructure, agriculture, capital markets and energy, in line with the government’s strategy of increasing private sector participation in economic development.