A retail bond is a loan issued by a corporation to an investor who lends the company money, and in return the firm pays the debtor interest on that credit.
Dar es Salaam. The National Microfinance Bank (NMB) plans to issue a retail bond.
A retail bond is a loan issued by a corporation to an investor who lends the company money, and in return the firm pays the debtor interest on that credit.
However, details of the planned bond will be made public in the coming few days, pending an approval from the Capital Markets and Securities Authority, according to the bank’s investor relations manager, Ms Anna Mwasha.
“We are optimistic to float bond in two weeks; we are waiting for the go-ahead from the responsible authority before making everything public,” she noted.
“The process is at the last stage, and the interest rate will be reasonable.”
NMB corporate affairs manager Joseline Kamuhanda told journalists that the bonds offer safety of principal and periodic interest income.
Once done, NMB will become the second commercial bank in the country to issue a retail bond.
Late last year, Exim Bank Tanzania issued the country’s first Retail bond as it sought to raise up to Sh15 billion to beef up its operational capital.
The bond was listed at the Dar es Salaam Stock Exchange.
