NMB lists bond on Dar Stock Exchange

NMB Bank has listed it’s heavily oversubscribed three-year retail bond on Dar es Salaam Stock Exchange (DSE). The bond was oversubscribed by 333 per cent to 83.3bn/- and the authority okayed all amount green shoe option.

This is the first heavily oversubscribed bond that also attracted many investors from across some 180 districts in the country.

The amount is over three times a targeted collection of 25bn/- from the three-year bond approved by Capital Markets and Securities Authority (CMSA) to enable the largest lender to boost its capital.

The IPO was run in one month between June and July. The bank managed to collect 83.3bn/- from 2268 investors, most of them are small entrepreneurs who bought the bonds through the bank’s 220 branches countrywide.

“Big response of the investors was a result of education to people encouraging them to invest,” NMB acting Managing Director - Ruth Zaipuna, explained. CMSA Chief Executive Officer Mr Nicodemus Mkama said he was glad that 99.5 per cent of the investors in NMB’s bond are small entrepreneurs.

“This means that Tanzanians now are ready to invest in financial sector or capital market,” Mr Mkama said. He was optimistic that if small entrepreneurs would be more educated they would increasingly invest in financial sector or capital market.

DSE Chief Executive Officer Mr Moremi Marwa commended the bank for such great achievement of collecting above the target, particularly from small entrepreneurs.

“This is a bond with a new record because it is unusual to have such a big number of investors in the corporate bond,” he said.

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Author: DAILY NEWS Reporter

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