NBC to facilitate issuance of bond for water authority

Summary

  • As the lead transaction advisor, the bank will finalise critical steps towards the issuance of the first green bond for improving water infrastructure

Dar es Salaam. The United Nations Capital Development Fund (UNCDF) has appointed the National Bank of Commerce (NBC) to facilitate the issuance of a green bond for Tanga water authority.

As the lead transaction advisor, the bank will finalise critical steps towards the issuance of the first green bond for improving water infrastructure.

Tanga Urban Water Supply and Sanitation Authority’s (Tanga Uwasa) green municipal bond is expected to be issued by the first quarter of 2023, according to a statement issued yesterday.

The announcement for the appointment was cemented by the signing of a strategic agreement with NBC which will lead a consortium of five other financial and licensed capital market advisors.

This is as per requirement by the Capital Market and Securities Authority (CMSA), and is a path for the transaction to be listed at the Dar es Salaam Stock Exchange.

The works includes finalisation of the prospectus and securing relevant clearances from the government and capital markets regulators.

Tanga Uwasa’s managing director Geoffrey Hill said; “We look forward to working with NBC to fast-track the completion of the remaining stages of unlocking financing to serve our communities through increasing water supply capacity.”

UNCDF’s Tanzania’s head Peter Malika underscored that the appointment of NBC is a way of entrenching and enhancing national capacities to develop innovative instruments to finance development.

UNCDF as a development finance partner, plays an important role to help address market imperfections and financing gaps, especially in developing economies where financial markets are less mature.