NMB Bank opens bond investment aiming to raise Sh25 billion
Dar es Salaam. NMB bank has opened its second retail bond investment, seeking to raise Sh25 billion in an effort to boost its capacity to issue loans and other operational businesses.
Speaking at a news conference today in Dar es Salaam NMB’s head of Consumer Banking and Retail Sales Mr Omari Mtiga said the three-year bond will offer an interest of 10 per cent annually to investors.
“We target to source Sh25 billion but the Capital Markets and Securities Authority (CMSA) approved the green light to borrow up to Sh40 billion. All individuals aged 18 and above are eligible to participate in the retail bond so long as they can invest a minimum of Sh500, 000,” he noted.
According to him, all NMB’s customers and non-customers are allowed to invest after the trading of the bond started on May 10 and will close on July 8.
“With the bond in question, we will be in position to strengthen our deposit base so that we can issue more loans to customers and cover other operation costs,” he added.
He added that once successful, small and medium enterprises as well as employees of large businesses whose salaries pass through the bank would benefit from the bond.
According to Mr Isaac Mgwassa, a senior manager consumer liabilities of NMB bank, the financier has announced the tender, a week before the first bond which was issued in 2016 is yet to mature.
He said, the success of the first program which attracted 1,811 investors worth Sh41.4 billion resulting to oversubscriptions by 107 per cent has made the entity (NMB) to seek other funds.
“We requested to raise Sh20 billion with a green option of Sh25 billion but we ended up raising Sh41.4 billion. This demonstrates the trust that people have in NMB and the appetite for attractive investment opportunity in the local capital markets,” he said.
