<\/p>\n
IFC said the five-year bond is the largest Tanzanian Shilling-denominated issuance to date in international capital markets.<\/p>\n
<\/p>\n
The bond carries a 7.60% coupon and was placed with European institutional investors. Goldman Sachs International acted as dealer for the transaction.<\/p>\n
<\/p>\n
The proceeds will support a $100 million equivalent local currency loan to NMB Bank Plc, aimed at expanding financing for micro, small and medium-sized enterprises (MSMEs) across Tanzania.<\/p>\n
<\/p>\n
IFC said 20% of the financing will be dedicated to women-owned MSMEs, strengthening access to long-term funding for businesses that often face barriers to credit.<\/p>\n
<\/p>\n
The financing is expected to help businesses reduce foreign exchange risk by borrowing in local currency while supporting investment, expansion and job creation.<\/p>\n
<\/p>\n
The transaction also supports Tanzania\u2019s Vision 2050 objective of private sector-led growth and forms part of IFC\u2019s wider strategy to deepen capital markets and expand access to local currency finance in emerging economies.<\/p>\n
<\/p>\n
IFC said the issuance demonstrates the potential of offshore local currency bonds to mobilise international capital and increase local currency financing beyond the capacity of domestic markets.<\/p>\n
<\/p>\n
Over the past five financial years, IFC has provided more than $50 billion in local currency financing across more than 60 emerging-market currencies.<\/p>\n
<\/p>\n
The institution uses a range of financing instruments, including public issuances, private placements, thematic bonds and local currency bonds, to support clients in managing foreign exchange exposure.<\/p>\n
<\/p>\n
According to IFC, local currency financing plays an important role in helping businesses avoid currency mismatches, particularly where revenues are earned in domestic currency, but borrowing is often available mainly in foreign currency.<\/p>\n
<\/p>\n
By supporting NMB Bank, the transaction is expected to increase the availability of longer-term financing for Tanzanian MSMEs and help strengthen the country\u2019s private sector.<\/p>\n
<\/p>\n
The bond was traded on June 18, issued on June 25 and will mature on June 15, 2031. It is listed on the London Stock Exchange and cleared through Euroclear and Clearstream.<\/p>\n
<\/p>\n
–WorldBank\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":40546,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-40545","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"The International Finance Corporation (IFC), a member of the World Bank Group, marked the inaugural issuance at the London Stock Exchange. ","published_date":"","news_description":"The International Finance Corporation (IFC), a member of the World Bank Group, marked the inaugural issuance at the London Stock Exchange. ","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/40545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/40545\/revisions"}],"predecessor-version":[{"id":40547,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/40545\/revisions\/40547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/40546"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=40545"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=40545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}