CRDB Bank’s Al Barakah Sukuk Records Massive Oversubscription in Tanzania

Dar es Salaam – CRDB Bank’s Al Barakah Sukuk has achieved remarkable oversubscription levels, demonstrating robust domestic liquidity and increasing investor interest in Shariah-compliant investment products within Tanzania.

The bank revealed on Wednesday that the Sukuk, which was officially listed on the Dar es Salaam Stock Exchange (DSE) on November 19, 2025, successfully raised Sh125.4 billion, achieving a 418 percent subscription rate.

The foreign currency tranche exceeded expectations even more dramatically, with the bank originally targeting $5 million but ultimately attracting $32.3 million, representing a 646 percent oversubscription.

Speaking at the listing ceremony, Deputy Permanent Secretary in the Ministry of Finance, Dr Elijah Mwandumbya, characterized the outcome as a significant national achievement.

"The extraordinary performance of this Sukuk is a clear testament to the maturity of Tanzania’s capital markets and the strong appetite for innovative investment products," he stated.

Dr Mwandumbya confirmed the Government’s ongoing commitment to strengthening the regulatory environment, including the finalization of dedicated Islamic finance legislation aimed at enhancing transparency, deepening investor protection, and establishing Tanzania as a competitive hub for Shariah-compliant finance across Africa.

CRDB Bank Group CEO and Managing Director, Abdulmajid Mussa Nsekela, reported that the results exceeded all projections, with the Sukuk attracting more than 1,000 investors from diverse backgrounds including individuals, institutions, religious groups, and international investors from over seven countries.

"What we have witnessed is unprecedented. Raising Sh125.4 billion and $32.3 million is not only a success for CRDB Bank, but also a vote of confidence for Tanzania," Mr Nsekela said.

He revealed that individual Tanzanians invested over Sh70 billion, indicating rising financial literacy and confidence in domestic markets, while international investors contributed more than Sh50 billion, highlighting Tanzania’s expanding profile in global Islamic finance.

Mr Nsekela emphasized that the Sukuk supports CRDB’s long-term strategy to mobilize $300 million within five years through Shariah-compliant instruments to fund development projects, expand SME financing, and enhance financial inclusion.

Representing the Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Exaud Julius noted that the Sukuk’s performance reflects effective policy measures strengthening the investment environment.

"These results clearly demonstrate a growing public confidence in investing in corporate bonds," he remarked.

The listing has increased DSE’s total market capitalization to Sh13.7 trillion, up from Sh13.5 trillion, accompanied by growth in both domestic and international investor participation.

DSE CEO, Peter Nalitolela, praised the successful listing, emphasizing that the oversubscription demonstrates investor confidence in Tanzania’s regulatory framework.

He indicated that the listing will enhance liquidity, broaden market participation, and elevate Tanzania’s position relative to established Islamic finance centers such as Kuala Lumpur, Dubai, Riyadh, and Manama.

Chairperson of the CRDB Bank Board of Directors, Professor Neema Mori, celebrated the achievement, stating that the strong investor response reflects the Board’s dedication to innovation, good governance, and ethical finance.

She referenced the confidence demonstrated by partners such as British International Investment (BII) as additional validation of the Sukuk’s credibility.

The Chairperson of the Al Barakah Shariah Advisory Board, Abdul Mohammed, described the Sukuk as transformative for Tanzania.

He welcomed ongoing government initiatives to establish national Islamic finance legislation, noting that such a framework would enable the country to access highly liquid markets in the Gulf Cooperation Council (GCC).

The listing ceremony included a symbolic bell-ringing to officially introduce the Sukuk into the secondary market, providing investors with a regulated platform for trading, transparency, and long-term ethical investment opportunities.

Since its establishment in 2021, CRDB Al Barakah has experienced rapid expansion, currently serving over 400,000 customers, holding more than Sh350 billion in deposits, and issuing over Sh287 billion in Shariah-compliant financing.

The Sukuk’s success represents a significant milestone for Islamic finance in Tanzania and strengthens the country’s position as an emerging destination for regional and international investment.