DAR ES SALAAM: THE value of the corporate bonds at the Dar es Salaam Stock Exchange (DSE) has now climbed to 325.4bn/- from 153bn/-, which is equivalent to 111.9 per cent, after the CRDB Bank listed its Green Bond on Friday, this week.
The CRDB Green Bond, worth 171.8bn/-, saw 99 per cent of its investors are local and only one per cent are foreign investors.
Initial public offering for the CRDB Green Bond was opened on August 31 this year and closed on October 6 whereby 171.8bn/- was collected, up from a target of 40bn/-, hence it surpassed the target by 429.6 per cent.
“The sale of this corporate bond has been very positive in the development of the financial sector in the country as 98 per cent of investors participated are retail investors while the remaining two per cent are institutional investors,” stated Mr Nicodemus Mkama Chief Executive Officer of the Capital Markets and Security Authority (CMSA).
Mr Mkama noted that as the country implements the Third National Five-Year Development Plan (FYDP III) which aims at building competitive economy for people’s development, the need for financial resources also increases, especially for implementing infrastructure projects.
In order to attain this goal, new products in the capital markets are needed.
“As you all know that the government has put strategy to encourage the use of clean energy which is environment-friendly, hence introduction of the green bond would enable implementation of the government’s intention of investing in clean energy,” he said.
He further said the participation of individual local investors was crucial for increasing liquidity in the capital market and implementation of the National Financial Inclusion Framework which aims at increasing participation of citizens in formal financial sector.
