Dar es Salaam. CRDB Bank has more than doubled its initial target of Sh150 billion with the successful launch of the Samia Infrastructure Bond.
The bank raised Sh323 billion and achieving an impressive oversubscription of 115 percent, underscoring its strong position in the market but also reflecting the growing investor confidence in its initiatives, according to a press release availed to the media on Tuesday.
This significant milestone coincides with the bank’s 30th anniversary, highlighting strong investor confidence in its initiatives and leadership in the Tanzanian financial sector.
Mr Mohamed Mchengerwa, Minister of State in the President’s Office for Regional Administration and Local Government (RALG), commended CRDB Bank for this remarkable accomplishment, highlighting the importance of the funds raised for national development.
Achieved within just one and a half months, this success reflects strong investor confidence in CRDB Bank, reinforcing its status as a leading financial institution in Tanzania.
The bond, named in honor of President Samia Suluhu Hassan, demonstrates CRDB Bank’s commitment to driving national economic growth and enhancing individual prosperity.
The funds will be directed towards the timely completion of urban and rural road infrastructure projects, benefiting citizens across the country.
Mr Mchengerwa praised the bond’s success, emphasizing the vital role of public-private partnerships (PPP) in addressing the infrastructure challenges faced by citizens, businesses, and investors.
“The Samia Infrastructure Bond exemplifies how collaboration between the government and the private sector can advance national progress.
The TZS 323 billion raised offers great promise for future infrastructure development, especially in road construction. I commend CRDB Bank for this innovative approach to supporting government initiatives aimed at improving citizens’ lives,” he stated.
From its launch on November 29, 2024, to its closing on January 17, 2025, the bond attracted 327 companies and institutions, which invested over Sh118.99 billion, along with 6,896 individual investors contributing Sh204.1 billion.
Notably, 94 percent of the total funds were raised through CRDB Bank’s SimBanking platform.
CRDB Bank CEO Abdulmajid Nsekela emphasized that the bond’s success showcases the investment capacity of Tanzanians and local businesses, as well as their trust in CRDB Bank.
“This achievement illustrates the strong investment potential within our market. Investors demonstrated great enthusiasm, knowing their funds are secure with a well-structured project. We take immense pride in earning the trust of Tanzanians,” Mr Nsekela stated.
The successful execution of this initiative resulted from CRDB Bank’s collaboration with RALG through the Urban and Rural Roads Agency (TARURA).
This partnership aims to significantly enhance infrastructure development, ensuring that Tanzanians benefit from improved road networks.
“We attracted numerous private investors with a minimum investment threshold of just Sh500,000. All funds raised will finance contractors executing projects under TARURA’s upcoming tenders. This will greatly facilitate the timely completion of infrastructure projects,” he added.
CRDB Bank also guarantees a 12 percent annual return, paid quarterly over the bond’s five-year tenure, ensuring sustained investor benefits.
“Interest payments will occur on February 10, May 10, August 10, and November 10, starting this year on May 10,” Mr Nsekela confirmed.
The Samia Infrastructure Bond is the second phase of CRDB Bank’s Five-Year Medium-Term Note Program, approved by the Capital Markets and Securities Authority (CMSA) in 2023, aiming to raise $300 million (approximately Sh750 billion).
Last year, CRDB Bank launched the Kijani Bond, the first green bond in Sub-Saharan Africa, which also exceeded its target, raising Sh171.82 billion instead of the planned Sh40 billion.
TARURA CEO Victor Seff emphasized that the partnership with CRDB Bank will accelerate road infrastructure projects across Tanzania.
“We have many ongoing projects nationwide, but financing has always been a challenge. Now, contractors will receive timely payments, ensuring projects are completed as planned,” Mr Seff noted.
CMSA CEO CPA Nicodemus Mkama stated that the listing of the Samia Infrastructure Bond has increased the value of investments in corporate and institutional bonds by 38.9 percent, reaching Sh1.16 trillion from Sh 837.31 billion.
“The Samia Infrastructure Bond is a clear reflection of the strength of our capital markets, positioning the Dar es Salaam Stock Exchange as a key player in facilitating investment in Tanzania’s national infrastructure projects,” remarked Mr Mkama.
Following the bond sale, the Samia Infrastructure Bond has been listed on the Dar es Salaam Stock Exchange (DSE), allowing late investors to participate while benefiting from the 12 percent annual interest rate.
DSE CEO Peter Nalitolela highlighted the growing interest of Tanzanians in capital markets, predicting continued market growth and greater economic benefits.
“The success of companies listed on the exchange contributes to the overall strength of the financial market. We are pleased to see initiatives like the Samia Infrastructure Bond bringing prosperity to investors and the country,” Mr Nalitolela concluded.
