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| Treasury Registrar - Nehemiah Mchechu (centre), NMB Chief Executive Officer - Ruth Zaipuna (left) and NMB Board Chairman - Dr. Edwin Mhede, launch NMB's Jamii Bond in Dar es Salaam yesterday. |
- The NMB Jamii Bond offer is open for purchase to all Retail and Institutional Investors; NMB and non-NMB customers
- The minimum investment starts from TZS 500,000
- The Bond is offered at 9.5% p.a. paid quarterly and can be bought from any NMB Branch or Stockbrokers licensed by the CMSA
Named the “NMB Jamii Bond”, is expected to raise TZS 75 Billion with a green shoe option of TZS 25 Billion. 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 socio-economic empowerment of women and youth.
This is the 1st Sustainability Bond to be issued in the East African region. NMB Jamii Bond continues to reinforce NMB’s commitment to advancing Tanzania’s economy socially and economically while also focusing climate and environmental issues all underlined in the United Nations’ Sustainable Goals (SDGs) such as SDG 4: Quality Education, SDG 7: Affordable and Clean Energy, SDG 6: Clean water and sanitation, SDG 5: Gender Equality, SDG 10: Reduced Inequalities and SDG 13: Climate Action, just to name a few.
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. Further details on the Bonds including Information Memorandum, NMB Bank Sustainable Financing Framework and Second Party Opinion are available on the NMB website www.nmbbank.co.tz.
International Finance Corporation (“IFC”), the private sector affiliate of the World Bank Group and largest global development institution focused on the private sector in developing countries and British International Investment plc ("BII"), an institution wholly owned by the United Kingdom Foreign, Commonwealth & Development Office, are acting as co-anchors.
The Jamii bond will be listed and traded at the Dar es Salaam Stock Exchange (DSE). Thereafter, a buyer of the bond will be able to sell the bond to another buyer 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 Tanzania Shillings One Trillion (TZS 1,000,000,000,000).
To bring the bond to market as well as putting in place 10 year NMB TZS 1 Trillion Multicurrency Medium Term Note (MTN) Programme , NMB has worked with ABSA Bank Tanzania Limited as joint lead transaction advisors, KPMG, Certified Public Accountants as the reporting accountant; Rex Advocates as the legal advisor and Orbit Securities as a sponsoring broker.
The NMB Sustainable Finance Framework received a Second Party Opinion (SPO) from Sustsainalytics. FSD Africa provided technical assistance for NMB Bank’s Portfolio Review assessed by the Climate Bonds Initiative (CBI) for alignment with ICMA and Multilateral Development Bank (MDB) principles.
FSD Africa also offered technical assistance towards securing Second Party Opinion (SPO) for NMB Bank’s Sustainable Finance Framework that was provided by Sustainalytics. The SPO assessed the alignment of the framework with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2023 as administered by ICMA and the Green Loan Principles 2023 and Social Loan principles 2023 as administered by Loan Markets Association (LMA)
NMB CEO Ruth Zaipuna commented: “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 Tanzania Shillings Two Hundred Billion (TZS 200 B) which was approved back in 2016 and managed to issue four (4) tranches raising over TZS 220 Billion. With our new Multicurrency MTN programme worth TZS 1 trillion in which we are rolling out our 1st tranche under the Jamii Bond, NMB is looking to raise TZS 75 Billion with a greenshoe option of TZS 25 Billion whose proceeds will directly used to finance both environmental and social projects that touch communities where we and our customers live in. This is the rationale behind the name Jamii Bond.
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.
NMB Jamii bond will not only help stimulate the development of the local capital market and diversify our 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 Ms Zaipuna
The NMB Jamii Bond offer is open from today, 25th September 2023, to 27th October 2023. Applications for the NMB Bond are available from any of our 230 NMB branches or licensed stockbrokers.
About the NMB Jamii Bond
A bond is a type of investment that allows an investor to invest in a corporate or government entity by lending money to it for a fixed period of time; at par, discount or premium. In return, the investor earns interest that will not change over the bond tenure.
When you buy the NMB Jamii bond, you have lent the bank your money. NMB guarantees to return your money (principal) on maturity day and additionally pay you the agreed interest every quarter throughout the bond tenure. Interest received from your bond, as per the law, is not subject to withholding tax deduction. Corporate bonds are different from shares as the bondholder does not get ownership of the corporate entity nor entitled to vote and/or make a decision in the bank.
About NMB Bank
NMB Bank Plc. (“NMB”) is a fully serviced commercial bank incorporated in the United Republic of Tanzania. Through its three main business divisions: Retail, Wholesale and Treasury, NMB provides a suite of financial services and products to retail customers, farmers, SMEs, Corporates, Institutions and the Government.
The bank has 230 branches, over 21,000 Agents (Wakala) and more than 700 ATMs across the country and is represented in all districts of Tanzania. NMB has over 6 million customer accounts and employs over 3,500 staff. It is listed at the Dar Es Salaam Stock Exchange and its largest shareholders are the strategic partners ARISE BV with a 34.9% shareholding and the Government of Tanzania with a 31.8% shareholding. NMB is a licensed Investment Adviser and Custodian Bank by the Capital Markets and Securities Authority (CMSA).
Euromoney awards for excellence selected NMB as the “Best Bank in Tanzania” for 10 years in a row from 2013-2022. The bank has been named the Safest Bank in Tanzania for the year 2020 by Global Finance Magazine. NMB Bank was also awarded as the Best Blended Finance Partner in Africa for banks working with International Finance Corporation (IFC) of the World Bank Group in 2019. Moreover, NMB was the Best Retail and Best Commercial Bank in Tanzania by the Banker East Africa Magazine in 2018. For more information about NMB and its services, please visit our website: www.nmbbank.co.tz
NMB CEO Ruth Zaipuna commented: “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 Tanzania Shillings Two Hundred Billion (TZS 200 B) which was approved back in 2016 and managed to issue four (4) tranches raising over TZS 220 Billion. With our new Multicurrency MTN programme worth TZS 1 trillion in which we are rolling out our 1st tranche under the Jamii Bond, NMB is looking to raise TZS 75 Billion with a greenshoe option of TZS 25 Billion whose proceeds will directly used to finance both environmental and social projects that touch communities where we and our customers live in. This is the rationale behind the name Jamii Bond.
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.
NMB Jamii bond will not only help stimulate the development of the local capital market and diversify our 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 Ms Zaipuna
The NMB Jamii Bond offer is open from today, 25th September 2023, to 27th October 2023. Applications for the NMB Bond are available from any of our 230 NMB branches or licensed stockbrokers.
About the NMB Jamii Bond
A bond is a type of investment that allows an investor to invest in a corporate or government entity by lending money to it for a fixed period of time; at par, discount or premium. In return, the investor earns interest that will not change over the bond tenure.
When you buy the NMB Jamii bond, you have lent the bank your money. NMB guarantees to return your money (principal) on maturity day and additionally pay you the agreed interest every quarter throughout the bond tenure. Interest received from your bond, as per the law, is not subject to withholding tax deduction. Corporate bonds are different from shares as the bondholder does not get ownership of the corporate entity nor entitled to vote and/or make a decision in the bank.
About NMB Bank
NMB Bank Plc. (“NMB”) is a fully serviced commercial bank incorporated in the United Republic of Tanzania. Through its three main business divisions: Retail, Wholesale and Treasury, NMB provides a suite of financial services and products to retail customers, farmers, SMEs, Corporates, Institutions and the Government.
The bank has 230 branches, over 21,000 Agents (Wakala) and more than 700 ATMs across the country and is represented in all districts of Tanzania. NMB has over 6 million customer accounts and employs over 3,500 staff. It is listed at the Dar Es Salaam Stock Exchange and its largest shareholders are the strategic partners ARISE BV with a 34.9% shareholding and the Government of Tanzania with a 31.8% shareholding. NMB is a licensed Investment Adviser and Custodian Bank by the Capital Markets and Securities Authority (CMSA).
Euromoney awards for excellence selected NMB as the “Best Bank in Tanzania” for 10 years in a row from 2013-2022. The bank has been named the Safest Bank in Tanzania for the year 2020 by Global Finance Magazine. NMB Bank was also awarded as the Best Blended Finance Partner in Africa for banks working with International Finance Corporation (IFC) of the World Bank Group in 2019. Moreover, NMB was the Best Retail and Best Commercial Bank in Tanzania by the Banker East Africa Magazine in 2018. For more information about NMB and its services, please visit our website: www.nmbbank.co.tz
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