British International Investment commits US$15mn to NMB Bank’s sustainability bond

British International Investment (BII), the UK’s development finance institution and impact investor, announced its anchor commitment of $15 million equivalent in Tanzanian Shilling to NMB Bank’s (NMB) inaugural sustainability bond offering, known as the NMB Jamii Bond.

In Tanzania, NMB is a market leader and pioneer in sustainability, promoting financial inclusion and wellbeing. The bank has received a total of TZS 400 billion from its dual-tranche sustainability bond, significantly above its target subscription, making it the largest sustainability bond ever issued in the East African region.

The Jamii bond 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. The level of oversubscription is 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 proceeds from the bond will finance social and climate projects that contribute to inclusive socioeconomic growth and strengthen the response to climate change.

Seema Dhanani, Head of Office and Coverage Director, Kenya and East Africa, BII,said: “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. This aligns with our strategy in supporting the development of capital markets in Tanzania and serves as a fine example for institutional investors and financial institutions in the region to encourage greater innovation in this area. We look forward to supporting further initiatives to finance high quality projects that deliver climate and development impact.”

Ms. Ruth Zaipuna, CEO of NMB Bank Plc, said: ‘‘The extraordinary success of the bond demonstrates the strong appreciation among Tanzanian and global investors for the soundness of NMB Bank and its commitment to the sustainability of its operations, business, community, and environment. It further reiterates the bank’s creditworthiness and 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’’.