Bank of Tanzania Issues New Coupon Rates for Treasury Bonds

By Christian Gaya for HakiPensheni Center

The Bank of Tanzania (BoT) on behalf of the Government of the United Republic of Tanzania has issued the new coupon rates for Treasury bonds to be applicable effectively from April 13, 2022  as follows:

BOND MATURITY	COUPON RATE
2 YEARS	7.60%
5 YEARS	8.60%
7 YEARS	9.48%
10 YEARS	10.25%
15 YEARS	11.15%
20 YEARS	12.10%
25 YEARS	12.56%

According to the public notice issued by BoT, the rates shall be applicable prospectively from 13th April 2022 and states that these changes will not affect the previously issued Treasury bonds. 

"The coupons are fixed for the duration of the bond and shall be paid semi-annually," the report says. 

Moreover, the report states that the BoT also plans to issue 5-year, 7-year, 15-year, 20-year and 25-year Treasury bonds; as well as 35-days, 91- days, 182-days and 364-days Treasury bills, during the 4 th quarter of the financial year 2021/2022. 

"Treasury bills and bonds auctions will be issued on Wednesdays’ (i.e. alternating in each week) or another day in case of public holidays," the report discloses.

Furthermore, the report adds that more details will be released in each auction Call for Tender as treasury bonds issuance calendar for the 4th quarter of financial year 2021/2021 it has been indicated below.

13-Apr-22

20 YEARS

12.10%

27-Apr-22

7 YEARS

9.48%

11-May-22

25 YEARS

12.56%

25-May-22

5 YEARS

8.60%

08-Jun-22

15 YEARS

11.15%

22-Jun-22

20 YEARS

12.10%