SAMIA INFRASTRUCTURE BOND OVERSUBSCRIBED, GENERATES 323BN/-

Mohamed Mchengerwa (right), Minister of State in the President's Office (Regional Administration and Local Government), arrives at an event where results of the Samia Infrastructure Bond issued by CRDB Bank in partnership with TARURA were announced yesterday. Left is CRDB Bank Group CEO and Managing Dirctor, Abdulmajid Nsekela.

Minister of State in the President's Office (Regional Administration and local Government), Mohamed Mchengerwa rings a bell to mark the listing of Samia Infrastructure Bond on the Dar es Salaam Stock Exchange after results were annouonced in Dar es Salaam yesterday. He is flanked by Senior Officials from CMSA, DSE, CRDB and TARURA.

Dar es Salaam, 18 February 2025: The Samia Infrastructure Bond, launched in November 2024, has exceeded its subscription target by more than two times.

The bond, issued by CRDB Bank in partnership with the Tanzania Rural and Urban Roads Agency (TARURA), was officially listed on the Dar es Salaam Stock Exchange (DSE) yesterday.

The 5-year bond raised 323bn/-, surpassing the 150bn/- target by 115 per cent, indicating a significant oversubscription.

The bond issuers have been permitted to keep the entire amount raised through the debt instrument.

Minister of State in the President’s Office (Regional Administration and Local Government), Mr Mohamed Mchengerwa, described the success as a testament to the power of Public-Private Partnerships in driving development.

“This is another demonstration proving that Public- Private Partnerships are the way to go for achieving development,” he stated in Dar es Salaam. He highlighted that over 80 per cent of the bond’s buyers were Tanzanians, indicating strong public trust in the government and a willingness to contribute to national development.

“We have made history in increasing Tanzanian participation in the capital market. This shows we are on the right path,” he noted.

He further emphasised that the bond was a response to local contractors’ challenges in accessing capital and that the initiative would help address their financial constraints.

“The implementation of this bond was a dream of mine and of President Samia Suluhu Hassan to resolve the financial challenges facing local contractors. I believe the success of this bond will inspire other institutions to explore innovative funding solutions for development projects,” he added.

“This investment will bring positive change to Tanzanians who have been waiting for road infrastructure and bridges. With these funds available, there will be no reason for project delays,” he asserted.

Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Mr Nicodemus Mkama, stated that these achievements were transforming capital markets in Tanzania.

“The value of investment has increased, making the capital markets more attractive to both institutional and individual investors, thereby accelerating further development,” he noted.

He further highlighted that the issuance of this bond was a key step in implementing national policies such as the National Citizens’ Economic Empowerment Policy.

CRDB Bank Plc’s Group CEO and Managing Director, Mr Abdulmajid Nsekela, hailed the success of the bond as a milestone in Tanzania’s financial sector.

“This is the first and unique achievement of its kind in Tanzania. Announcing the bond results alongside its listing on the Dar es Salaam Stock Exchange is a historic moment. This is the first infrastructure bond of its nature where a commercial bank has collaborated with the government to introduce it,” he said.

The Samia Infrastructure Bond is the second tranche of the green bond initiative aimed at mobilising funds for infrastructure development.

“On 11 October 2024, we received approval to issue this bond and we partnered with TARURA. The sale commenced on 29 November 2024 and concluded on 17 January 2025. The target was to collect 150bn/-, but by 17 January 2025, we had raised 323bn/-, achieving a 115 per cent success rate,” he elaborated.

Retail investors contributed 204.1bn/- (63.64 per cent), reflecting a growing awareness and participation of Tanzanians in bond investments. Institutional investors contributed over 118bn/- (36.36 per cent).

“We believe the minimum investment amount of 500,000/- was accessible and the bond offers interest payments four times a year. Most funds were collected via mobile money, demonstrating the significant role of technology in financial transactions,” he explained.

He assured investors that all funds raised would be used to empower contractors awarded tenders for district road infrastructure projects.

Eng Victor Seff, Chief Executive Officer of the TARURA, stated that processing funds from the bond for contractors was in the final stages.
“These funds will start being disbursed in March this year,” he confirmed.

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