In a groundbreaking move, NMB Bank has accomplished a record-breaking feat by raising an astounding 400 billion TZS through the sale of its dual-tranche Jamii Bond. This accomplishment marks a significant milestone in the bank’s trajectory, as the bond was officially listed for trading on the Dar es Salaam Stock Exchange (DSE) on Tuesday.
The primary allocation of these funds is slated for eligible climate, social, and environment-focused projects, aligning with initiatives that bolster resilience against climate change, drive sustainable infrastructure, and advocate for the efficient and responsible utilization of natural resources.
President Samia Suluhu Hassan's impassioned endeavor to draw social and environmental investments into the nation has found support in this landmark initiative by NMB Bank. This aligns seamlessly with her recent address at the Conference of the Parties (COP 28) in Dubai, United Arab Emirates (UAE), where she urged the global community to channel finances towards climate adaptation, emphasizing accessibility, predictability, and transparency in funding for developing countries grappling with the brunt of environmental challenges.
Tanzania's advocacy for clean cooking energy was also reiterated by President Samia, urging world leaders to extend their support through financial backing.
The Minister of State in the President’s Office for Planning and Investment, Professor Kitila Mkumbo, hailed NMB Bank’s initiative as a cornerstone in advancing financial inclusion and attracting high-quality investments, bolstering national development efforts. Prof Mkumbo emphasized the pivotal role of initiatives like the NMB Jamii Bond in formalizing businesses and integrating citizens into the country's economic mainstream.
In response, NMB’s Chief Executive Officer, Ruth Zaipuna, hailed the overwhelming success of the three-year sustainability bond, emphasizing its remarkable traction among both local retail investors and offshore impact financiers. The bond's subscription levels spoke volumes, with the TZS tranche oversubscribed by 284%, mobilizing 212.9 billion TZS against a targeted 75 billion TZS, while the USD tranche, with a subscription of 730%, amassed 73 million US dollars against the initial target of 10 million US dollars.
This feat, which surpassed the earlier approval by the Capital Markets and Securities Authorities (CMSA) by more than threefold, highlights not just the buoyancy of local capital markets but also a burgeoning support for sustainable finance in the nation.
Ms Zaipuna revealed that following CMSA’s approval to increase the green shoe options, the bank received an overwhelming 99% of applications, primarily facilitated through its extensive network of 231 branches.
The significance of this achievement extends beyond financial milestones. The oversubscription of the first tranche of the bank’s 1 trillion TZS Medium-Term Note (MTN) underscores the burgeoning support for sustainable finance, illustrating the vibrancy of local capital markets.
Mr. Nicodemus Mkama, CEO of CMSA, highlighted the substantial increase in the value of corporate bonds in capital markets, attributing it to the bond’s success. He emphasized the active participation of both retail and foreign investors, affirming the safety and attractiveness of Tanzania's capital markets for both local and international stakeholders.
The DSE's Acting CEO, Ms. Mary Mniwasa, underscored the significance of the NMB Jamii Bond as the 28th corporate bond from 15 entities listed on the bourse since 1999. This bond's listing as the third sustainability security locally signifies not only an escalating appetite for green financing but also Tanzania's steadfast commitment to sustainable development.