Dar es Salaam - British International Investment (BII), the United Kingdom's development finance institution, has announced its anchor commitment of $15 million (37.5 billion Tanzanian Shillings) to the NMB Bank Jamii Bond. This landmark investment comes as the Jamii Bond experiences overwhelming demand, with over 5600 local investors participating. BII co-anchors this initiative alongside the International Finance Corporation (IFC), a member of the World Bank Group.
Seema Dhanani, Head of Office and Coverage Director for Kenya and East Africa at BII, expressed the institution's strategic alignment with the bond's target. In a statement, Dhanani highlighted BII's commitment to supporting the development of capital markets in Tanzania and its anticipation of backing initiatives that finance high-quality projects with climate and development impact.
"We are delighted to be one of the anchor investors in the Jamii Bond, the first of its kind issued by NMB Bank and listed on the Dar es Salaam Stock Exchange (DSE)," Ms. Dhanani remarked.
The Coverage Director emphasized the powerful testament the level of oversubscription represents, signaling the growing capacity of local capital markets to meet the increasing demand for climate and sustainability financing. The success of the Jamii Bond has mobilized institutional and other impact investors, reflecting the market's robust response.
The bond, listed on the DSE last week, surpassed expectations by raising a record 400 billion Tanzanian Shillings, significantly exceeding its initial target of 75 billion Tanzanian Shillings. The dual-tranche bond consists of a shilling tranche and a US dollars tranche.
The funds raised through this initiative will primarily be directed towards financing eligible climate, social, and environment-focused projects. These projects aim to enhance resilience against climate change, promote sustainable infrastructure, and encourage the efficient and sustainable use of natural resources.
NMB Bank's Chief Executive Officer, Ms. Ruth Zaipuna, acknowledged the extraordinary success of the bond, attributing it to the strong appreciation among local and global investors. The oversubscription underscores the eagerness of investors, both local and international, to capitalize on safe and impactful investment opportunities within Tanzania's robust investment climate.
The subscription details reveal that the shilling tranche achieved an outstanding 284 percent, mobilizing 212.9 billion Tanzanian Shillings against the targeted 75 billion Tanzanian Shillings. Meanwhile, the US dollars tranche witnessed an exceptional subscription rate of 730 percent, securing $73 million compared to the initial target of $10 million. The success of the NMB Bank Jamii Bond reinforces Tanzania's attractiveness as an investment destination and its potential for sustainable and impactful projects.