NMB Bank PLC, Tanzania’s leading financial institution, has listed its maiden three-year US$ 73 million Sustainability Bond on the International Securities Market (ISM) and Sustainable Bond Market (SBM) Platform at the London Stock Exchange (LSE).
- •Proceeds from the bond, aptly named the ‘Jamii bond’, which means ‘Community’ in Swahili, will be directed towards climate-positive infrastructure projects.
- •British International Investment (BII) was an anchor investor in the Tanzanian shilling tranche of the Bond.
- •FSD Africa provided technical assistance for NMB Bank’s Portfolio Review
Ms. Ruth Zaipuna, Chief Executive of NMB, said: “This extraordinary success highlights the strong confidence Tanzanian and global investors have in NMB Bank’s soundness and commitment to sustainability across operations, business, community, and environment. It reaffirms our creditworthiness and reflects the desire of investors, both local and international, to seize the safe and impactful investment opportunities within Tanzania’s robust investment climate.”
Julia Hoggett, CEO of LSE plc added: “We are delighted to welcome NMB Bank’s sustainability bond to the London Stock Exchange, and to be the venue of choice for the bond’s first admission to trading outside Africa. This not only highlights NMB’s dedication to transparency and commitment to their sustainability objectives, but also showcases the continued international investor support that issuers across Africa can find in London. We are a leading global hub for sustainable finance and proud to be at the forefront of enabling capital flows towards the green economy.”
British International Investment (BII), UK’s development finance institution, was an anchor investor in the Tanzanian shilling tranche of the NMB Jamii Bond.
Christopher Chijiutomi, Managing Director and Head of Africa at BII, said: “The NMB listing represents a unique opportunity for UK and global investors to directly participate in Africa’s future. It will enhance vital inward investment into Africa and act as a proof point that sustainable development vehicles of this type can be attractive to the world’s largest institutional investors in London and elsewhere.”
The need for inward investment into Africa has never been greater. According to ECPDM, the global think tank, the current finance gap per year is between $200-400 billion. The funds raised through the bond will be injected into high-impact companies that are combating the climate emergency and which support inclusive growth.
FSD Africa provided technical assistance for NMB Bank’s Portfolio Review assessed by the Climate Bonds Initiative (CBI) for alignment with ICMA and Multilateral Development Bank (MDB) principles and the EU & CBI Taxonomies. FSD Africa also offered technical assistance towards securing Second Party Opinion (SPO) for NMB Bank’s Sustainable Finance Framework.
Mark Napier, Chief Executive of FSD Africa, said: “Listing of the NMB sustainability bond on the LSE is a great milestone, and it signals the potential that entities in the African region have to tap sustainable finance both within and beyond the African continent. Mobilising long-term capital at scale on the African continent continues to benefit from the collaborative partnerships from the city of London, and we are pleased to have extended technical assistance in support of NMB’s issuance of both their gender bond in 2022 and the sustainability bond in 2023.”