4 May 2016

Tanzania: NMB Seeks to Raise Sh20 Billion in Retail Bond for More Lending

Dar es Salaam — The National Microfinance Bank (NMB) NMBseeks to raise Sh20 billion in a retail bond in an effort to boost its capacity for increased loan issuance.

"With the bond in question, we will be in position to strengthen our deposit base so that we can issue more loans to customers," the bank's investor relations manager, Ms Anna Mwasha, said yesterday. The bond will start trading Tuesday next week.

A retail bond works in such a way that various investors issue loans to a business entity (in this case to NMB) and in returns the entity (NMB) pays the debtor interest on the credit.

NMB's bond, which has been approved by the Capital Markets and Securities Authority (CMSA), carries a rate of interest of 13 per cent per annum. The trading of the bond closes on June 8. All individuals aged 18 and above are eligible for participation in the retail bond so long as they can invest a minimum of Sh500,000 into it.

She said CMSA had given NMB the green light to borrow up to Sh25 billion through the retail bond and hoped that the Sh20 billion target would be easily reached.

The bank's corporate affairs manager, Ms Joseline Kamuhanda, told journalists that once successful, small and medium enterprises as well as employees of large businesses whose salaries pass through the bank would benefit from the bond.

Farmers will also enjoy it.

Tanzania

President Warns Corrupt Ruling Party Cadres

THE ruling Chama Cha Mapinduzi (CCM)'s National Chairman, President John Magufuli, yesterday warned members of the… Read more »

Copyright © 2016 The Citizen. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 900 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.