Mortgage Refinance Company lists Sh12bn bond
TMRC board of directors chairman, Mr Theobald Sabi. Photo | File
What you need to know:
The first trench, which was officially listed yesterday, was sold between May 28 and June 8 and registered a subscription of 104 per cent
Dar es Salaam. Tanzania Mortgage Refinance Company Ltd (TMRC) has listed a Sh12.5 billion bond at the Dar es Salaam Stock Exchange (DSE), giving investors another investment avenue.
This is the first segment of the Sh120 billion corporate bond programme which the TMRC will issue in tranches in the next five years.
The first tranche, which was officially listed yesterday, was sold between May 28 and June 8 and registered a subscription of 104 per cent.
“The first tranche was sold between May 28 and June 8 this year. Due to citizens’ awareness, TMRC collected Sh12.5 billion, which was 4.3 per cent more than the expected amount of Sh12 billion,” the Capital Markets and Securities Authority (CMSA) acting chief executive officer, Mr Nicodemas Mkama said.
Mr Mkama added that the amount to be collected due to this corporate bond sell will be used to provide cheap loans to people and financing other development projects in order to improve the housing sector in Tanzania. According to the TMRC board of directors chairman, Mr Theobald Sabi, said in seven years, the mortgage company has managed to increase its loan tenure to an average of 15 to 25 years from 5-10 years in 2010. “The number of banks offering mortgage loans has increased to 31 as of March from three in 2010 and mortgage interest has decreased to 16 and 19 per cent from 22 and 24 per cent respectively,” he said.
The deputy minister for Finance and Planning, Dr Ashatu Kijaji, hailed TMRC for implementing its role of improving the housing sector in Tanzania by providing loans and stock markets.
She also added that, “TMRC must insure that Tanzania residents assess mortgage loans and insure the loans are affordable to them”.
with tenure of five year in the Dar es Salaam Stock Exchange (DSE) to make a total of 16 bond back companies in the equity market.
Addressing this yesterday during the listing, DSE board chairman Jonathan Njau said TMRS has become the first asset back security in East Africa to be added in the stock exchange.
