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| NMB Bank Head of Consumer Banking, Omari Mtiga (centre) listening to Senior Manager Consumer Liabilities, Isaac Mgwassa (right) during the unveiling of the NMB retail bond in Dar es Salaam. Left is Senior Manager Advisory Services, Sigifrida Joseph. |
- The NMB Bond offer is open for purchase to NMB and non-NMB customers starting from TZS 500,000
- The NMB Retail offer can be bought from any NMB Branch or bond brokers
This is the second such bond to be issued by NMB and can be bought from any NMB branch or selected bond brokers with a minimum purchase of TZS 500,000 (Five Hundred Thousand Tanzanian Shillings) only.
This move is a result of the Capital Markets & Securities Authority (CMSA) granting approval to issue the first tranche of the NMB Plc Medium Term Note (MTN) Programme.
Investors in the NMB Retail Bond will earn an interest rate of 10% per annum payable quarterly for its term of three years, until June 2022; the interest rate paid is subject to withholding tax. An NMB bond is tradable, so you can sell the bond to another buyer and receive the principal before the maturity date. Investors can sell the bond before maturity on the open market through a stockbroker – in accordance with the Dar es Salaam Stock Exchange rules.
NMB Managing Director Albert Jonkergouw commented: “NMB is principally funded by retail deposits but there are other attractive funding options, with the NMB Retail Bond we are looking to raise TZS 25BN with a green shoe option of TZS 15BN.
Many investors have shown interest about investing in high quality bonds and we consider this to be a good opportunity to satisfy this need which will help stimulate the development of the local capital market and diversify our funding sources. An opportunity that allows us to mobilise funds that the bank can use to create new customer loans at favourable rates.”
“The NMB Retail Bonds are special for they are open to the general public for buying and can be purchased from NMB’s largest network of branches across the country.” This type of a bond provides opportunities to 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.
The NMB Retail Bond will be on offer starting on 10th June 2019 to 8th July 2019 and interest will accrue from this date. Applications for the NMB Bond may be made via any of the 229 NMB branches or appointed bond brokers.
For more information, contact:
Joseline Kamuhanda, NMB Bank Plc Head of Communications and Corporate Affairs.
Email: Joseline.kamuhanda@nmbtz.com
About NMB:
NMB Bank PLC is Tanzania’s leading retail bank, both in customer base and branch network. With over 3 Million customers, about 229 branches and over 800 ATM’s, NMB is represented in more than 100 percent of Tanzania’s districts. NMB serves individuals, micro and small enterprises as well as larger businesses. NMB has a strong financial record, based on years of strong and stable performance. NMB is listed at the Dar Es Salaam Stock Exchange. NMB’s largest shareholders are its strategic partners Rabobank with a 34.9% share and the Government of Tanzania with a 31.9% share.
About the NMB Bond:
A bond is a type of investment that allows an investor to invest in a (typically corporate or governmental entity) by lending its money for a fixed period inclusive of interest that will not change over the bond tenure.
When you buy an NMB bond, you have lent the bank your money. NMB guarantees to return your money (capital) within a fixed period until maturity. From the time you invested to until the bond matures. NMB will also pay you the agreed interest rate every quarter. Interest from your bond as per the law is eligible for withholding tax deduction. This is different from shares, since a bond does not give you ownership of the corporate entity and you are not allowed to vote and /or make a decision in the bank.
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