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Vertex targets Sh10 billion in Tanzania’s first ETF and Bond Fund
What you need to know:
- Vertex seeks to mobilise Sh5 billion for the Bond Fund through the issuance of 50 million units, and a further Sh5 billion for the Exchange Traded Fund via an Initial Public Offering of ETF shares
Dar es Salaam. Vertex International Securities Ltd is targeting to raise Sh10 billion as it launches two pioneering products set to reshape Tanzania’s capital markets.
The two products are the Vertex International Securities Exchange Traded Fund (VIS-ETF) and the Vertex Bond Fund.
The Vertex Bond Fund, structured as a Collective Investment Scheme, will invest in fixed-income securities, including deposits, treasury bills, and bonds.
The fund seeks to mobilise Sh5 billion through the issuance of 50 million units at Sh100 each, with a minimum purchase of five units to ensure broad accessibility.
The VIS-ETF, on the other hand, will become Tanzania’s first exchange-traded fund listed on the Dar es Salaam Stock Exchange (DSE).
The ETF will hold a diversified portfolio of high-performing listed stocks, including CRDB Bank Plc, NMB Bank Plc, National Investment Corporation of Tanzania (NICO), Dar es Salaam Stock Exchange Plc, and Afriprise.
Manager – Advisory & Capital Markets at Vertex Mr Ahmed Nganya,, said the VIS-ETF is designed to boost market liquidity while offering investors a transparent, accessible, and cost-effective investment avenue.
“The ETF will raise Sh5 billion from the public through an Initial Public Offering of ETF shares, which will then be listed on the DSE,” he said, adding that it will operate as an open-ended collective investment scheme.
This structure allows for the creation and redemption of units, supported by a market maker or authorised participant to ensure price efficiency.
According to Mr Nganya, investors will be able to trade VIS-ETF shares on the exchange in the same way as other listed equities.
“This gives them exposure to the performance of all the portfolio’s shares at once, rather than concentrating on a single security, offering broader market coverage,” he said.
He noted that the VIS-ETF offers reduced brokerage commissions, making it an economical choice for both retail and institutional investors.
It also provides diversification and flexibility, allowing investors to spread risk across multiple high-performing assets while adapting to changing market conditions.
The fund will also prioritise transparency and efficiency.
“Unlike other investment funds, the VIS-ETF will ensure a high degree of visibility into its holdings and operations. Price stability will be maintained through the involvement of market makers, ensuring fair and efficient trading throughout the sessions,” Mr Nganya said.
