CRDB Bank Launches Groundbreaking Sharia-Compliant Bond to Revolutionize Financial Inclusion
Dar es Salaam, Tanzania – CRDB Bank has unveiled a pioneering Sharia-compliant bond designed to expand financial access and drive ethical investments across East Africa. The CRDB Al Barakah Sukuk aims to raise 30 billion Tanzanian Shillings and 5 million US dollars, with a potential green-shoe option to increase funding to 40 billion Shillings and 7 million dollars.
This innovative financial instrument marks a significant milestone in democratizing capital markets, specifically targeting investors with religious considerations. The bond provides an inclusive investment opportunity for individuals previously excluded from traditional financial products.
Key Features of the CRDB Al Barakah Sukuk:
– 12% annual return for local currency investors
– 6% annual return for US dollar investors
– Quarterly profit distributions
– Minimum investment of 500,000 Shillings or 1,000 US dollars
– Subscription open until September 12, 2025
The Sukuk will fund ventures in critical sectors including healthcare, halal agribusiness, education, and environmentally sustainable manufacturing. It represents the third tranche of the bank’s five-year $300 million Medium-Term Note Programme.
Bank leadership emphasized the importance of creating financial products that align with people’s values and promote inclusive economic growth. The bond offers a unique opportunity for investors to participate in ethical and socially responsible investments while maintaining compliance with Islamic financial principles.
Subscriptions for this groundbreaking financial instrument are now open, promising to transform the landscape of investment opportunities in Tanzania and the broader East African region.
