Tanzanian Bank NMB launches $400 million Green Bond Program
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Tanzanian Bank NMB is launching a 10-year multi-currency medium-term bond worth 1 trillion Tanzanian shillings ($400 million) as part of a green bond initiative.
The bond is the first of its kind in Tanzania and is part of a growing trend of African nations and businesses using green bonds to combat climate change and invest in sustainable development.
The bond will have a 10-year term and will be issued in multiple currencies. The first tranche of the bond will raise 75 billion Tanzanian shillings ($30 million), with the option to raise an additional 25 billion shillings ($10 million) depending on demand. The bond will also raise $10 million from offshore private investors, with the option to take an additional $5 million depending on demand.
The proceeds from the bond will be used to finance a variety of environmental and social projects, including renewable energy, energy efficiency, green transport, and wastewater treatment. NMB has not yet provided specific details about the projects that will be financed, but the bank has said that the projects will be aligned with its sustainability strategy.
The bond will have an annual interest rate of 9.5% and will be on sale until October 27th. NMB’s green bond issuance has been supported by FSD Africa, an organization that helps to deepen financial inclusion on the continent.
NMB’s move to issue a green bond follows that of another Tanzanian commercial bank, CRDB Bank, which announced its own $300 million green bond issuance program last month. The growing popularity of green bonds in Tanzania is a positive sign for the country’s commitment to sustainable development.
The launch of Tanzanian Bank NMB ‘s green bond is a significant development for the Tanzanian financial sector. It is the first green bond to be issued by a Tanzanian bank and is part of a growing trend of African nations and businesses using green bonds to finance sustainable development.
The bond is also a sign of NMB’s commitment to sustainability. The bank has said that the proceeds from the bond will be used to finance a variety of environmental and social projects, which is aligned with the bank’s sustainability strategy.
The bond is likely to be attractive to investors who are looking for a way to invest in sustainable development in Tanzania. It has a relatively high interest rate of 9.5%, which is higher than the interest rates on most other bonds in Tanzania. The bond is also backed by NMB Bank, which is one of the largest and most respected banks in Tanzania.
The launch of NMB Bank’s green bond is a positive development for Tanzania’s financial sector and for the country’s commitment to sustainable development.