By Guardian Reporter , The Guardian
Tanzania’s financial market product has broadened its footprint in the global capital markets, after the first listed social bond on the Dar es Salaam Stock Exchange (DSE) made its entrance at the London Stock Exchange (LSE).
This has made history as the first in the EAC and Sadc blocs to debut a sustainability bond on the stock market’s International Securities Market and Sustainable Bond Market platform.
The second offshore cross-listing of the bond follows its last month admission to trade at the Luxembourg Stock Exchange, where the locally listed gender bond has been successfully trading since last year.
Julia Hoggett, Chief Executive Officer (CEO), LSE plc, said: "We are delighted to welcome NMB Bank's sustainability bond to the London Stock Exchange, and to be the venue of choice for the bond's first admission to trading outside Africa. This not only highlights NMB's dedication to transparency and commitment to their sustainability objectives, but also showcases the continued international investor support that issuers across Africa can find in London. We are a leading global hub for sustainable finance and proud to be at the forefront of enabling capital flows towards the green economy.”
She further said the region’s largest and the first-ever sustainability bond also empowers investors with the opportunity to make money while bettering lives and helping to protect Mother Nature.
The lender floated the dual-tranche bond last year to raise 75bn/- in local currency and $10 million for bankrolling social and green projects that had shoe options of 25bn/- and $5million.
Proving the bank’s credit worthiness and showing investors’ readiness to support its sustainability agenda, the TZS and USD tranches of the bond were oversubscribed by 284 percent and 730 percent respectively raising a record 400bn/- (about US$160 million).
CEO Ruth Zaipuna who led NMB officials and other dignitaries to celebrate cross-listing of the bond said the historic securities development enhances the bank’s credentials in global money markets and its visibility to the international investor community.
“Today’s listing of the Jamii Bond cements the bank position as a trailblazer in sustainability within the African capital markets and now at a global stage,” Zaipuna noted.
Attendees at the function included Tanzania’s High Commissioner in the UK, Mbelwa Kairuki, and the British Minister of State in the Foreign, Commonwealth & Development Office, Andrew Mitchell, whose presence also signified relevance of the transaction in the diplomatic space.
“This extraordinary success highlights the strong confidence Tanzanian and global investors have in NMB Bank's soundness and commitment to sustainability across operations, business, community, and the environment,” she added.
Zaipuna said that apart from giving the two bonds better visibility internationally, the offshore ventures also enable the bank to tap funds from a deeper pool of capital and wider investor base for financing enhancement of lives, transformation of communities and shaping a better future for all.
The Jamii Bond is the first tranche of current 10-year 1trn/- (circa USD 385 million) multi-currency Medium-Term Note (MTN) Program whose proceeds are being dedicated to support impactful projects such as renewable energy, sustainable water and waste water management, green buildings, food security, and employment generation.
“We had started with the cross-listing of this bond at the Luxembourg Stock Exchange last month, and today we are listing here at LSE so we can give more impact investors an opportunity to make a positive difference while earning a lucrative return of 6 Month Term SOFR plus 250 basis points on their investments,” Zaipuna explained.
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