Dar es Salaam — CRDB Bank has officially launched CRDB Al Barakah Sukuk, a Sharia-compliant, interest-free bond aimed at supporting sustainable investment and businesses in Tanzania and the wider East African region.
The Sukuk aims to raise TZS 30 billion and USD 5 million, with the possibility of increasing to TZS 40 billion and USD 7 million. This makes it the largest bond ever issued by a financial institution in Tanzania, allowing multi-currency investment.
FORMER PRESIDENT KIKWETE: “THIS IS A CAPITAL MARKETS REVOLUTION”
Speaking at the launch over the weekend, former President of the United Republic of Tanzania, H.E. Dr. Jakaya Mrisho Kikwete, commended CRDB Bank for promoting inclusive economic participation.
“This Sukuk brings a revolution to our capital markets. It creates opportunities for people who were previously excluded from the formal financial system due to religious beliefs, offering an interest-free investment aligned with Sharia principles. It’s a major step towards economic inclusion and moral development,” said Dr. Kikwete.
PART OF A USD 300 MILLION MEDIUM-TERM STRATEGY
CRDB Al Barakah Sukuk is the third bond under the 2023–2027 Medium Term Strategy worth USD 300 million approved by the Capital Markets and Securities Authority (CMSA). It follows the Green Bond and Samia Infrastructure Bond, both of which attracted higher-than-expected investor interest.
INVESTMENT TERMS
CRDB Bank CEO, Abdulmajid Mussa Nsekela, said proceeds will fund Sharia-compliant projects including:
- Healthcare services
- Agriculture and livestock
- Education
- Environmentally friendly production
The Sukuk offers 12% annual return for TZS investments and 6% annual return for USD investments, paid quarterly. The minimum investment is TZS 500,000 or USD 1,000, and the subscription window is open until 12 September 2025.
KEY PARTNERS AND INTERNATIONAL COOPERATION
British International Investment (BII), a UK-based investment company, is the lead investor. British High Commissioner to Tanzania, H.E. Marianne Young, noted that this is BII’s first-ever global investment in an Islamic Sukuk and that it strengthens economic diplomacy between the two countries.
OPEN TO ALL INVESTORS
Chairman of the Sharia Advisory Board, Abdul Van Mohammed, said:
“This Sukuk follows Sharia principles but is open to every Tanzanian. We welcome all investors to join in building our economy.”
REGULATORS: “CAPITAL MARKETS ARE GROWING”
CMSA CEO, CPA Nicodemus Mkama, and Dar es Salaam Stock Exchange (DSE) CEO, Peter Nalitolela, said the launch of CRDB Al Barakah Sukuk demonstrates the growth and maturity of Tanzania’s capital and securities markets.
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