NBC Bank’s Twiga bond oversubscribed by 30 pct

The National Bank of Commerce (NBC) has announced that its a five-year bond christened ‘NBC Twiga Bond’ issued earlier last month has received a remarkable 30 per cent oversubscription.

The NBC Twiga Bond sought to raise 30bn/- with the proceeds being used to extend affordable financing for Small and Medium Enterprises, Micro and Agri-sector in the country.

According to a statement issued by the bank yesterday this is the first time the bank has issued bonds for the public that targeted SMEs, farmers and Small and Medium Enterprises (SMEs).

The statement said the bank’s Twiga bond received applications for notes worth 38.9bn/-being 130 per cent of the issued amount of 30bn/-

The bank noted that it received approval from Capital Market and Securities Authority (CMSA) to issue 30bn/- with a green shoe option of an additional 20bn/-

Investors in the NBC Twiga Bond will thus earn a whopping interest rate of 10 per annum, payable semi-annually throughout the five years until November 2027.

“We have seen a remarkable 30% oversubscription. This is the first public issuance for NBC and we have witnessed a historical Investor confidence,” Elvis Ndunguru Director of Business Banking at NBC Bank said.

He said the funds raised will be directed to various sectors of economy and support wealth creation as well as employment.

“NBC Bank is committed to continue participating into various capital markets activities to stimulate more growth for Tanzanians,” he added.