CRDB Bank’s Samia Infrastructure Bond Raises Sh323 Billion, Signaling Strong Investor Confidence in Tanzania’s Infrastructure Development
In a groundbreaking financial achievement, the Samia Infrastructure Bond has been dramatically oversubscribed, raising Sh323 billion against an initial target of Sh150 billion. This remarkable 115 percent oversubscription highlights the robust investor appetite and confidence in Tanzania’s infrastructure development initiatives.
The bond, specifically designed to support rural infrastructure projects managed by the Tanzania Rural and Urban Roads Agency (Tarura), demonstrates a significant leap forward in national development financing. By providing critical funding for infrastructure contractors, the bond will directly contribute to accelerating road construction and other essential projects across the country.
Government officials emphasized the strategic importance of this financial instrument. The funds will not only support infrastructure development but also showcase the strength of Tanzania’s financial system in driving national progress. With a 12 percent annual return paid quarterly, the bond offers an attractive investment opportunity for institutional and corporate investors.
Financial markets have interpreted the oversubscription as a positive signal of local market liquidity and investor confidence. The successful bond issuance suggests a growing potential for domestic borrowing, potentially reducing reliance on more expensive foreign commercial loans.
This achievement follows the success of the previous Kijani Bond, which raised Sh171.82 billion, significantly exceeding its initial target. The Samia Infrastructure Bond represents the second phase of a strategic five-year financial program aimed at supporting national development objectives.
The listing on the stock exchange has already contributed to a 38.9 percent increase in corporate and institutional bond investments, now valued at Sh1.16 trillion. This development positions Tanzania’s capital markets as a crucial mechanism for funding critical national infrastructure projects.
For infrastructure agencies like Tarura, the bond represents a game-changing solution to long-standing financing challenges, ensuring timely payments to contractors and enabling more efficient project completion nationwide.
