Dar es Salaam. CRDB Bank has unveiled its landmark CRDB Al Barakah Sukuk, a Sharia-compliant bond aimed at raising Sh30 billion and $5 million, with a green-shoe option that could increase the totals to Sh40 billion and $7 million, respectively.
The instrument, officially launched at the weekend, marks a major step in broadening participation in Tanzania’s capital markets.
Gracing the event as guest of honour, retired President Jakaya Kikwete hailed the bank for its track record in mobilising investment through previous issuances such as the Kijani Bond and the Samia Infrastructure Bond, both of which were oversubscribed.
“These successes are a testament to investor confidence in CRDB Bank’s goals and capabilities. I have no doubt this Sukuk will follow suit, as it opens up opportunities for those who could not previously invest in interest-bearing bonds due to their beliefs,” he said.
The CRDB Al Barakah Sukuk is the third tranche under the lender’s five-year $300 million Medium-Term Note Programme approved by the Capital Markets and Securities Authority (CMSA).
It strictly adheres to Islamic finance principles and offers quarterly profit distributions at 12 percent per annum for Tanzanian shilling investments and six percent for US dollar investments.
CRDB Group CEO and managing director Abdulmajid Nsekela said the Sukuk reflects the bank’s commitment to inclusive finance and ethical investment.
“We are unlocking capital for sustainable projects in sectors such as healthcare, halal agribusiness, education and environmentally friendly manufacturing,” he noted.
Sharia Advisory Board Chairman Abdul Van Mohamed pledged continued guidance to ensure innovation in services that enhance financial inclusion.
The minimum investment is Sh500,000 or $1,000, with subscriptions open until September 12 before listing on the Dar es Salaam Stock Exchange.
