CRDB Sukuk smashes records, oversubscribed
DAR ES SALAAM: CRDB Bank’s Al Barakah Sukuk has set a formidable new benchmark in Tanzania’s capital markets, attracting overwhelming investor demand that points to a rapidly maturing financial sector and a surging appetite for Islamic finance.
Originally targeting 30bn/- and 5.0 million US dollars, the landmark issuance drew an extraordinary drew 125.4bn/- and 32.3 million US dollars achieving a remarkable 418 per cent and 646 per cent oversubscription.
The Deputy Permanent Secretary in the Ministry of Finance, Dr Elijah Mwandumbya, said during the listing of the bond on Dar es Salaam stock Exchange (DSE), the extraordinary performance of this Sukuk is a clear testament to the maturity of the country’s capital markets and the strong appetite for innovative investment products.
“The government remains committed to strengthening the regulatory environment, including finalising dedicated Islamic finance legislation that will enhance transparency, deepen investor protection and position Tanzania as a competitive hub for Shariah-compliant finance in Africa,” Dr Mwandumbya said yesterday.
The proposed legislation is expected to provide a clear regulatory framework for Islamic finance, enabling greater investor participation and market innovation.
Analysts say it could attract both domestic and international Shariah-compliant investments, further diversifying Tanzania’s financial sector and enhancing its competitiveness in the African market.
CRDB Bank Group CEO and Managing Director, Abdulmajid Nsekela, said that the results exceeded every expectation after it attracted over 1,000 investors, including individuals, institutions, religious groups and international participants from more than seven countries.
“What we have witnessed is unprecedented. The oversubscription is not only a success for CRDB Bank, but also a vote of confidence for Tanzania,” Mr Nsekela said.
More than 70bn/- was invested by individual Tanzanians, demonstrating growing financial literacy and trust in our markets, while over 50bn/- came from international investors, affirming Tanzania’s rising profile as a destination for Islamic finance.
Mr Nsekela adds that the Sukuk is aligned with the Bank’s long-term plan to mobilise 300 million US dollars over a period of five years through Shariah-compliant instruments to support development projects, expand SME financing and deepen financial inclusion.
Representing the Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Exaud Julius remarked that the success recorded in the sale of the CRDB AlBarakah Sukuk has been largely underpinned by sustainable policies aimed at enhancing the nation’s investment environment.
“These results clearly demonstrate a growing public confidence in investing in corporate bonds,” Mr Julius said.
The listing of the CRDB Al Barakah Sukuk pushed up the total market capitalisation on the DSE to 13.7tri/- from 13.5tri/-, alongside a rise in the number of both domestic and international investors.
The DSE CEO, Mr Peter Nalitolela commended the Sukuk’s successful listing, affirming that its oversubscription demonstrates strong investor confidence in the country’s sound regulatory environment.
He underscored that the listing will enhance liquidity, broaden participation and place the country in a stronger position relative to global Islamic finance centres such as Kuala Lumpur in Malaysia, Dubai–United Arab Emirates (UAE), Riyadh–Saudi Arabia and Manama–Bahrain.
CRDB Bank Group Chairperson Prof Neema Mori said the overwhelming investor response demonstrates the board’s mandate to drive innovation, enhance corporate governance, and expand opportunities for ethical and inclusive finance.
“We are especially encouraged by the trust shown by both local and international investors, including partners such as British International Investment (BII),” said Prof Mori.
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CRDB Bank’s Chairperson of the Shariah Advisory Board for Al Barakah, Abdul Mohammed welcomed the government’s ongoing effort to establish a national Islamic finance law, noting that the framework will open opportunities for the country to engage with highly liquid markets such as the Gulf Cooperation Council (GCC).
Since its establishment in 2021, CRDB Al Barakah has grown rapidly, now serving over 400,000 customers, holding more than 350bn/- in deposits and disbursing over 287bn/- in Shariah-compliant financing.
