EFTA lists Sh33 billion bond on DSE after 220 percent subscription
Capital Markets and Securities Authority Director General Nicodemus Mkama (holding the bell) during the official listing of the EFTA bond at the Dar es Salaam Stock Exchange. In the picture (from right) are EFTA Managing Director Nicomed Bohay and Peter Nalitolela. PHOTO| JOSEPHINE CHRISTOPHER
Josephine Christopher is a senior business journalist for The Citizen and Mwananchi newspapers
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Dar es Salaam. Equity for Tanzania Limited (EFTA) has officially listed its corporate bond on the Dar es Salaam Stock Exchange (DSE) after raising Sh33.04 billion, more than double its initial target.
The bond, issued under the EFTA Corporate Bond programme, surpassed its Sh15 billion target, reflecting strong investor confidence in the company’s leasing-based financing model and the growing strength of Tanzania’s capital markets.
The offer opened on February 10, 2026 and closed on March 16, 2026, attracting strong participation from both retail and institutional investors.
Speaking during the listing ceremony, EFTA Managing Director Nicomed Bohay said the oversubscription demonstrated growing trust in the company’s business model and signalled a broader shift in how Tanzanian firms are raising capital.
“These results reflect trust in the EFTA business model and Tanzania’s capital markets,” he said.
“The strong demand for high-quality fixed-income instruments has strengthened our funding position and supported our strategy to diversify capital sources by moving away from foreign currency loans in US dollars and euros and instead securing long-term financing in Tanzanian shillings.”
Mr Bohay said the move would reduce exchange rate exposure and improve financial sustainability.
He said that proceeds from the bond would be used to expand EFTA’s financing of productive equipment, particularly in agriculture, transport and machinery sectors.
The listing was welcomed by the DSE, which described the bond as a landmark issuance with wider economic significance beyond the capital market.
DSE Chief Executive Officer Peter Nalitolela said Tanzania’s capital markets had recorded strong growth over the past five years through increased issuances and innovative financing instruments.
“Over the last five years, capital markets in Tanzania have experienced impressive growth in terms of successive issuances and the introduction of innovative ways of raising capital,” he said.
Mr Nalitolela said the EFTA bond stood out because of its alignment with national development priorities, particularly in agriculture, SME financing and financial inclusion.
“This bond has multiplier effects on the Tanzanian economy. It aligns with SME financing frameworks, agricultural financing and expanding financial inclusion,” he said.
He added that the initiative also supports the country’s Development Vision 2050, which aims to build a resilient, inclusive and industrialised economy.
“Through EFTA’s business model, which uses agricultural machinery, we are shifting from traditional tools to more mechanised systems that enhance productivity,” he said.
Meanwhile, Capital Markets and Securities Authority (CMSA) Director General Nicodemus Mkama said the successful issuance reflected government efforts to deepen financial markets and improve access to capital for productive sectors.
He described EFTA’s performance as one of the standout bond issuances of early 2026 after raising Sh33 billion against a Sh15 billion target.
“These funds will be used to finance productive equipment such as tractors, processing machines, cargo and tourism vehicles, as well as mining and construction machinery,” Mr Mkama said.
He added that EFTA had become the first financial-sector company to offer leasing services through a publicly listed bond on the DSE.
According to CMSA data, 99.4 percent of investors were local, with retail investors accounting for 95.4 percent, highlighting growing domestic participation in Tanzania’s capital markets.
Institutional investors accounted for the remaining 4.5 percent.
Mr Mkama attributed the strong uptake to policy incentives, including the removal of withholding tax on bond interest and the reduction of the minimum investment threshold from Sh1 million to Sh100,000, which widened participation among youth and women investors.
He also cited digital platforms such as CRDB Bank’s SimBanking application for simplifying subscription and payment processes, alongside public financial education campaigns that improved investor awareness.
CMSA said it would continue strengthening the regulatory environment to encourage more public and private entities to raise capital through bonds, equities and collective investment schemes.
