British International Investment (BII), the UK’s development finance institution, announced its anchor commitment of 15 million US dollars (37.5bn/-) to NMB Bank Jamii Bond.
The Jamii bond, heavily oversubscribed, was backed by over 5600 local investors and co-anchored by BII and the International Finance Corporation (IFC), a member of the World Bank Group.
Head of Office and Coverage Director, Kenya and East Africa, BII, Seema Dhanani said in a statement yesterday that the bond target aligned with their strategy in supporting the development of capital markets in the country.
“We look forward to supporting further initiatives to finance high-quality projects that deliver climate and development impact.
“We are delighted to be one of the anchor investors in the Jamii Bond, the first of its kind issued by NMB Bank and listed on the Dar es Salaam Stock Exchange (DSE),” Ms Dhanani said in a statement.
The Coverage Director said the level of oversubscription was a powerful testament to the growing capacity of local capital markets to meet the growing need for climate and sustainability financing and mobilisation of institutional and other impact investors.
The bond raised a record of 400bn/- instead of 75bn/- from the sale of its dual-tranche, which was listed last week on DSE.
The funds will be principally used to finance eligible climate, social and environment-focused projects that positively impact resilience against climate change, achieve sustainable infrastructure and promote efficient and sustainable use of natural resources.
The NMB Chief Executive Officer (CEO), Ms Ruth Zaipuna, said the extraordinary success of the bond demonstrates the strong appreciation among local and global investors.
“The oversubscription shows the desire of local and international investors to take advantage of the multiple safe and impactful investment opportunities offered by the robust investment climate of the country,” she said.
The subscription showed that the shilling tranche marked 284 per cent mobilising 212.9bn/- against the targeted 75bn/-, the subscription of the US dollars tranche was 730 per cent fetched 73 million US dollars from the initial target of 10 million US dollars.