NMB Bank’s three years bond has been oversubscribed by 333 per cent and the Capital Markets and Securities Authority (CMSA) allowed the lender to retain the entire amount.
The largest bank in the country managed to raise 83.34bn/- through a three-year bond instrument, higher than the expected amount of 25bn/- sought to beraised.
Speaking in Dar es Salaam yesterday, the NMB Acting Managing Director, Ms Ruth Zaipuna, said the three-year Tranche 3 bond will be listed andcommence trading on the Dar es Salaam Stock Exchange (DSE) today.
“The outstanding performance of the bond instrument to 333 per cent oversubscription is a clear indication of the confidence and trust that our customers have in NMB,” she said, adding: “With the bond in question, the bank is in a position to strengthen its deposit base so thatit can issue more loans to customers and cover other operation costs.”
She said the bank issued tranche 3 of the Medium Note Programme (MTN), at a fixed coupon rate of 10 per cent per annum as approved by the CMSA.
The offer was opened to the public on 10th June 2019 and closed on 08th July 2019.
This is the result of the approval to issue the first tranche of the NMB Medium Term Note (MTN) programme.
She said the bond’s positive performance was another significant milestone that signifies confidence that investors have in NMB and the Capital markets in Tanzania after a successful tranche one of 41.9bn/-issued in June 2016, representing subscription level of 207 per cent and tranche two of 23.3bn/- issued in December 2017, representing subscription level of 116.5 per cent.
The CMSA has approved the bondholders’ register reflecting these results, ready for crediting the allotted bonds in the respective bondholders’ Central Securities Depository (CSD) accounts.
The three-year Tranche 3 bond will be listed and commence trading on the Dar es Salaam Stock Exchange (DSE) today under Code NMB-2019/22. T3 and will be paying coupon on 15th April, 15th July, 15th October and 15th January.
The NMB management acknowledges the efforts made by all parties involved in making the issuance a reality and successful, namely the board and management of CMSA, Stanbic Bank Tanzania Limited as the lead arranger and the registrar and Orbit Securities Limited as the sponsoring broker.