Tanzania lists first Shilling bond on London Stock Exchange

Tanzania has achieved a significant milestone by listing its first international bond denominated in Tanzanian Shillings on the London Stock Exchange (LSE). This landmark event, the first of its kind for Tanzania and the East African region, involves a bond valued at 262 billion shillings.

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The listing of the Tanzanian Shilling bond on the London Stock Exchange (LSE) is a historic step for the country's financial sector.

The bond's primary purpose is to provide NMB Bank with long-term Shilling funding. This capital injection is earmarked to increase lending to micro, small, and medium enterprises (MSMEs), women-led businesses, farmers, and entrepreneurs across the country. NMB Bank's CEO, Ruth Zaipuna, described the listing as historic for Tanzania's financial sector, opening new avenues for international investment and enhancing access to long-term Shilling financing for the private sector.

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Unlike foreign currency loans, this Tanzanian Shilling financing will enable businesses to invest and grow without facing the risk of foreign exchange rate fluctuations, thereby strengthening financial resilience and driving sustainable economic development.

Zaipuna highlighted the advantages of Shilling-denominated funding over foreign currency loans. Businesses can invest and grow without the risk of foreign exchange rate fluctuations, thereby strengthening financial resilience and fostering sustainable economic development. This initiative aligns with Tanzania's National Development Vision 2050, which emphasizes private sector-led growth, industrialization, innovation, and sustainable economic transformation.

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Access to long-term capital through innovative capital market instruments will be crucial in achieving these National goals.

The LSE is recognized as a major global capital market and a leading venue for listing domestic currency bonds internationally. Tanzania's inclusion signifies its emergence as an economic player capable of attracting international capital through its own currency, enhancing its standing in global financial markets. This move also reinforces NMB's position as a financial institution able to attract international capital to support national development priorities.

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This listing makes Tanzania among the emerging economies that have successfully accessed international capital through their own currency bonds, increasing the country's prestige in global financial markets.