On Thursday, TCCIA Investment Ltd initiated an initial rights offering, with plans to sell over 72.9 million shares, aiming to raise TZS 10.58 billion by December 1 of this year. The funds generated from this offering will bolster the company's investments in the capital markets, encompassing corporate shares and bonds within Tanzania, the East African Community (EAC), as well as the Southern African Development Cooperation (SADC).
Nicodemus Mkama, Chief Executive Officer of the Capital Market and Securities Authority (CMSA), spoke during the launch event and emphasized the strategic importance of this move. He noted that capital markets play a vital role in driving economic growth by facilitating the availability of financial resources and enhancing good governance, ultimately boosting productivity for companies and institutions.
Mr. Mkama also expressed the CMSA's commitment to fostering an enabling and participatory environment, which will empower both public and private sector institutions to utilize capital markets for securing funds for various development projects. This includes initiatives like green bonds, blue bonds, social bonds, and subnational bonds.
The approval for the rights offering was granted on November 3 of this year, following a thorough evaluation by the CMSA. The TCCIA Investment Ltd was found to have met all necessary conditions under the Capitalisation and Right Issues framework.
This strategic move by TCCIA Investment Ltd is expected to not only strengthen the company's foothold in the capital markets but also contribute to the broader economic development and growth of Tanzania and its neighboring regions within the EAC and SADC. Investors and stakeholders eagerly await the outcome of this initiative as it unfolds over the coming weeks.