NBC ANNOUNCES OVERSUBSCRIPTION OF TWIGA BOND BY 30%

Director of Business Banking at NBC Bank, Elvis Ndunguru (third left) along with other senior officers from the bank as well as representatives from the Dar es Salaam Stock Exchange (DSE) and Bank of Tanzania (BOT), showing the statistics of the achievements made in the sale of the Bank's bond known as NBC Twiga Bond that was oversubscribed by 30% from the target of TZS 30 Billion of the first tranche. The announcement was made in Dar es Salaam yesterday.

• NBC Twiga Bond oversubscribed by 30% from the target of TZS 30 Billion of the first tranche

• The net proceeds from the NBC Twiga Bond will lend to retail, small and medium-sized businesses, agricultural activities, businesses whose products and services directly impact women and youth, and local and multinational corporations.

Dar es Salaam – December 2022: National Bank of Commerce (NBC) announced its first Twiga Bond issuance oversubscription; the bank has surpassed its targets by 30% whereby TZS 38,911,200,000 was raised, representing a subscription of 130%.

This is NBC bank's first public issuance aimed at supporting lending to retail, small and medium-sized businesses, agricultural activities, businesses whose products and services directly impact women and youth and local and multinational corporations.

Speaking during the announcement event held in Dar es Salaam yesterday, NBC's Director of Business Banking, Elvis Ndunguru said the bond sold for one month was officially closed on December 7th this year with great success compared to the bank's expectations.

"As one of the largest lenders in Tanzania, we are thrilled to announce the success of the 1st tranche of Twiga bond issued early last month and oversubscribed by 30%, raising a total of TZS 38,911,200,000 from the initial target of TZS 30 Billion,’’ he announced.

He said Investors in the NBC Twiga Bond will earn a whopping interest rate of 10% per annum, payable semi-annually throughout the five years until December 2027. The interest rate paid is free from withholding tax deduction.

“This is the first time the Bank has issued bonds for the public and it is a welcome call to the SMEs, farmers and small traders who form the majority of employments of the youth and women in Tanzania.’’ Said Ndunguru.

Speaking during the occasion the Bank’s Director of Treasury and Markets, Peter Nalitolela extended his appreciation and gratitude to all valued investors for their support and trust in NBC Bank.

“The Management of National bank of Commerce Limited would like to thank and acknowledge guidance and support from the Bank of Tanzania (BOT), Capital Markets and Securities Authorities (CMSA), and Dar es Salaam Stock Exchange (DSE) and efforts made by all parties including transaction advisors to ensure that the first tranche of NBC Twiga Bonds was a success,” said Peter.

He said the proceeds from the Twiga Bond will enable the lender to meet the financing needs of the identified crucial groups that employ the majority of the population.

Speaking at the event, the representative from the BOT, Lameck Kakulu, in addition to congratulating the bank for the success, said that the BOT is more interested in the objectives of the bond that aims to expand the empowerment (loans) at affordable prices for small and medium businesses, the small sector and Agriculture in the country.

For his part And the representative from the Dar es Salaam Stock Exchange (DSE), Emmanuel Nyalali mentioned the date of listing the bond on the stock market as December 20, this year the move will provide an opportunity for various stakeholders to participate in the sale and purchase of bond shares.

NBC Bank launched its first ever Public Bond branded NBC Twiga Bond with a minimum purchase beginning at TZS 500,000. The offer was opened to the public on 6th November 2022 and closed on 7th December 2022.