Dar es Salaam. Investors from the East African Community (EAC) and the Southern African Development Community (SADC) have participated in the auction of a 20-year Treasury bond, held on Wednesday, February 19, 2025.
The Bank of Tanzania (BoT) opened the T-bond bids on February 13.
All bidders were required to submit their bids online through Central Depository Participants (CDPs).
Acting on behalf of the government, which is the issuer, BoT aims to raise Sh224.88 billion through the issuance of the bond to support budgetary financing.
The minimum bid requirement was set at Sh1 million, with a fixed annual coupon rate of 15.25 per cent.
“All East African Community, Southern African Development Community residents and Tanzanian citizens in the diaspora are eligible to participate,” the BoT said in a bid notice published on February 13.
The 20-year T-bond will be listed on the Dar es Salaam Stock Exchange (DSE) to facilitate secondary market trading, allowing investors to buy and sell the security after the initial auction.
This was not the first time BoT has extended the T-bond auction to regional investors.
On January 22, 2025, the central bank similarly invited Sadc and EAC residents to bid on a 10-year T- bond, which targeted Sh158.95 billion at a coupon rate of 14 per cent per annum.
The auction was oversubscribed by Sh73.95 billion, reflecting strong investor confidence, according to BoT’s auction results summary.
The government plans to borrow a total of Sh2.6 trillion through Treasury bills and bonds in the 2024/25 financial year, as outlined in the budget speech presented in Parliament on June 13, 2024 by the Minister for Finance, Dr Mwigulu Nchemba.
Treasury bonds are long-term debt instruments issued by the government to finance development projects.
