IFC supports NMB’s sustainability bonds

TANZANIA: The International Finance Corporation (IFC) has announced anchor investments in sustainability bonds issued by NMB Bank to widen access to finance for projects driving green, social and sustainability goals in Tanzania, and to increase access to finance for smaller businesses in the country.

Proceeds from the bonds will finance or refinance a range of projects in Tanzania that will help protect the environment, decrease greenhouse gas emissions and contribute to socially responsible initiatives, including renewable energy, energy efficiency, sustainable water and wastewater, green buildings, clean transport, and affordable housing projects.

The IFC subscribed to almost 16 per cent of the Tanzanian shilling and U.S. Dollar-denominated tranches of the multicurrency bond, equivalent in aggregate to 25 million US dollars.

The Tanzanian shilling and U.S. dollar bonds, which were issued on November 12 and December 8, respectively, raised 159 million US dollars in total.

The bonds align with the 2021 Social Bond Principles of the International Capital Markets Association, which prescribe transparent and accurate reporting to stakeholders.

The bonds will also support small businesses participating in qualifying green and social projects, enabling NMB to increase its number of loans extended to MSMEs by almost 50 per cent by 2027.

IFC anticipates that at least 3,200 new jobs over four years will be created by projects and businesses funded or co-funded by proceeds from the bonds.

“The NMB Sustainability Bonds reflect our wider values as a bank,” said Ruth Zaipuna, NMB Chief Executive Officer.

We hold strong to our conviction in continuing to grow our business while fulfilling broader development goals in a sustainable manner,”

“IFC is proud to back NMB’s green, social and sustainability bonds issued in Tanzania,” said Mary Porter Peschka, IFC Regional Director for Eastern Africa.

Expanding access for finance for projects and initiatives linked to green and climate-smart development goals will drive inclusive long-term economic growth in the country,”

IFC co-anchored the Tanzanian shilling portion of the investment with British International Investment, the UK’s development finance institution.

IFC’s investment in NMB’s local currency bond is supported by the International Development Association’s (IDA) Private Sector Window Local Currency Facility.

It also follows an IFC investment in the bank’s Jasiri gender bond issued last year, which is financing more than 3,000 women-owned MSMEs in Tanzania and helping bridge access to finance gender gaps.

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