Oversubscribed NMB Genre Link Get DSE Window List
The bank yesterday listed its oversubscribed bond as an environmental, social and governance (ESG) product. It targets social responsibility and environmental sustainability compliance, a first in bond-issuing practices at the DSE, bank officials said.
The gender bond resonates with the recommendations of the International Capital Markets Association (ICMA) for environmentally sensitive bonds, while providing a pathway for savings mobilization in the local market.
To bring the bond to market, NMB worked with FSD Africa, a financial sector development firm, which offered technical input on the bond framework, while Sustainalytics, a Dutch firm that assesses the sustainability of listed companies in stock market with regard to their environmental, social and corporate governance. performance, assisted by the second party opinion (SPO) aspect.
As of the bond’s closing date, it had received 74.2 billion/- from 1,630 applications, with 52% being women, 96% of applications coming from NMB agency networks and a dispersion of brokers.
Ruth Zaipuna, the bank’s chief executive, said at the bell ceremony at the DSE that the bond’s oversubscription underscored the public’s faith and confidence in the bank, noting that the annual interest turnover is expected to be 8.5% of the amounts invested, paid on a quarterly basis. .
Zaipuna said the bond reinforces the bank’s efforts to improve financial inclusion, setting a minimum investment of €0.5 million allowing more retail investors to diversify their equity holdings.
Affordable funding for businesses owned or controlled by women or whose products or services have a direct impact on women will come from the bond, with oversubscription suggesting public willingness to support the bank’s efforts, a she declared.
Moremi Marwa, CEO of DSE, noted that despite DSE’s lack of environmental, social and governance guidelines for links targeting sustainability, the Capital Markets Authority (CMA) cleared NMB’s application.
The DSE was ready with such rules after the pioneering role of B=NMB, he said, with CMSA CEO Nicodemus Mkama noting that the women’s bond attracted 1,607 domestic investors on the 1,630 recorded. About 99% of investors are retail investors, he said, attributing that take to the interest generated by the bespoke product.
FSD Africa representative, Evans Osano, said strong investor appetite had been noted for mid-term bonds, noting that the agency had worked with DSE to develop the green and social bond guidelines, applicable until now in a handful of exchanges in Africa.
Africa’s lack of capital creates a financing gap of $42 billion, while failure to include women in economic life erodes Africa’s productivity by an estimated $95 billion current affairs, with British High Commission Development Director Kemi Williams pointing to a huge untapped demand for investment in women.
There is growing evidence that gender equality strengthens economies and that investing in women and senior management strengthens companies, as those with diverse boards generate high returns on equity, she said.
International Finance Corporation (IFC) country representative Frank Ajilore said the women’s bond will provide an opportunity to grow women-led businesses.
“The bond is a landmark transaction. It will shine the spotlight on the Tanzanian financial markets. Financial inclusion is not just about investments, but about capacity building which can also create positive value,” he added.