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NMB issues 25bn/- bond to beef up capital

THE NMB Bank yesterday opened a window for threeyear bond, welcoming people to invest as it eyes to raise 25bn/- for beefing up its capital.

However, the bank is hopeful that through the newly released bond it would go even further to raise above that targeted amount by 15bn/-, thus making over 40bn/- additional capital.

The move is a result of the Capital Markets and Securities Authority (CMSA) granting approval to issue the first tranche of the NMB Medium Term Note (MTN) programme.

The NMB retail bond will be on offer starting yesterday up to July 8, 2019 and interest would accrue from that date. The interested buyers should make their application through the bank’s 229 branches countrywide or appointed bond brokers.

“The window is open for a one month from today for NMB and non-NMB customers who wish to buy bond from us and the minimum amount is 500,000,” Mr Omari Mtiga, NMB’s Head of Consumer Banking and Retail Sales, said.

He said investors in the NMB Retail Bond will earn an interest rate of 10 per cent per annum payable quarterly for its term of three years, until June 2022.

The interest rate paid is subject to withholding tax. At a press conference yesterday in Dar es Salaam, Mr Mtiga explained that the new bond comes after the first one, which also lasted for three years, ends in the next week.

The first bond which was opened in 2016, also targeted to raise 15bn/- capital boost, but the figure went as higher as about 40bn/-.

Mr Isaac Mgwassa, bank’s Senior Manager for Consumer Liabilities, commented that the capital boost from the bond would help the bank improve its services, including issuing loans to customers.

He said the investors who invested in the bank through the first bond are also welcomed to continue buying bonds in the newly announced bond.

PRIVATE sector stakeholders have challenged ...

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Author: BERNARD LUGONGO

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