NMB Bank has issued a three-year sustainability bond christened “NMB Jamii Bond” which is expected to raise 75bn/- with a green shoe option of 25bn/- bringing the total of the bond to 1trn/- the bank’s Chief Financial Officer Juma Kimori said.
Speaking during an event to announce the bond issue held in Dar es Salaam today, Kimori said the proceeds of this bond will contribute to building resilience against the negative impacts of climate change, achieving sustainable infrastructure, promoting efficient and sustainable use of natural resources such as water and energy, together with supporting other essential environmental and social projects that touch Tanzanian communities.
“These projects include, Renewable energy, energy efficiency, pollution prevention and control, sustainable water and wastewater management, green buildings, clean transport, climate change adaptation, environmentally sustainable management of living natural resources and land use affordable housing, access to essential services, employment generation, food security and ocio-economic empowerment of women and youth.
Kimori said the bond targets anyone who wishes to invest and earn an attractive return and has a minimum purchase amount is 500,000/- and can be purchased from any NMB Branch or CMSA licensed Stockbrokers.
“Investors in the NMB Jamii Bond will earn an interest rate of 9.5% per annum payable quarterly throughout the three years, until November 2026. The interest rate paid is exempted from withholding tax,” he added.
He added that the Jamii bond will be listed and traded at the Dar es Salaam Stock Exchange (DSE) where by buyers of the bond will be able to sell the bond to other buyers in the secondary market through a licensed stockbroker.
“This issuance follows the Capital Markets & Securities Authority (CMSA)’s approval to NMB to issue the 1st tranche of the bank’s 10-year Multicurrency Medium Term Note (MTN) Programme worth 1trn/-“he stressed.
The NMB Chief Executive Officer Ruth Zaipuna during the event said “NMB is principally funded by a range of instruments including retail and institutional deposits.
“With Jamii Bond, we hope to continue diversifying the bank’s funding mix and support our growth aspirations while positively impacting our societies. You will recall we had a Medium-Term Note (MTN) programme worth 200bn/- which was approved back in 2016 and managed to issue four (4) tranches raising over 220bn/-
“Targeted sectors/projects to be financed by proceeds of the bonds are as follows; Renewable energy, pollution prevention and control, water and waste water management, Green buildings, clean
Transportation, climate change adaptation, women empowerment and Gender equality, affordable housing, food security, essential services (health and education), and Youth,” she said.
Zaipuna noted that the NMB Jamii bond will not only help stimulate the development of the local capital market and diversify the bank’s funding sources but also provide opportunities for small investors to invest in bonds in lower denomination, diversify their investments and trade in the bonds market; thus, providing needed inclusion and access using the bank’s easily accessible network.” Added Zaipuna
The NMB Jamii Bond offer is open from today, 25th September 2023, to 27 th October 2023. Applications for the NMB Bond are available from any of our 230 NMB branches or licensed stockbrokers.