MINISTER MCHENGERWA COMMENDS CRDB BANK FOR THE SUCCESS OF THE SAMIA INFRASTRUCTURE BOND

The Minister of State, President’s Office – Regional Administration and Local Government (TAMISEMI), Hon. Mohamed Mchengerwa

SPC-BLOG -Journalist

The Minister of State, President’s Office – Regional Administration and Local Government (TAMISEMI), Hon. Mohamed Mchengerwa, has commended CRDB Bank for the remarkable success of the Samia Infrastructure Bond, which raised TZS 323 billion, more than double the initial target of TZS 150 billion.

This achievement, realized within just a month and a half, reflects strong investor confidence in CRDB Bank, further solidifying its position as a leading financial institution in Tanzania.

Driving Economic Growth Through Infrastructure Development

The Samia Infrastructure Bond, named in honor of President Dr. Samia Suluhu Hassan, underscores CRDB Bank’s commitment to national economic growth and improving citizens' livelihoods. Funds raised from this bond will facilitate the timely completion of urban and rural road infrastructure projects.

Hon. Mchengerwa emphasized the importance of public-private partnerships (PPP) in enhancing infrastructure development and addressing challenges faced by citizens, businesses, and investors across the country.

“The Samia Infrastructure Bond is a clear example of how collaboration between the government and the private sector can drive national development. Raising TZS 323 billion is a promising indicator of future infrastructure improvements, particularly in road construction.
I highly commend CRDB Bank for this innovative initiative, which directly supports the government’s efforts in improving the lives of Tanzanians,” said Minister Mchengerwa.

Strong Investor Participation

From its launch on November 29, 2024, to its closing on January 17, 2025, the bond attracted 327 companies and institutions, investing over TZS 118.99 billion, alongside 6,896 individual investors who contributed a total of TZS 204.1 billion. Notably, 94% of the total amount was raised through CRDB’s SimBanking platform.

CRDB’s Commitment to Financial Inclusion and Development

CRDB Bank CEO Abdulmajid Nsekela expressed gratitude for the overwhelming investor confidence, highlighting it as a testament to the financial capability and investment readiness of Tanzanians.

"Our collaboration with TAMISEMI and the Tanzania Rural and Urban Roads Agency (TARURA) has yielded significant success.
Many private investors participated due to the low minimum investment of TZS 500,000, making this bond accessible to a broad range of Tanzanians.
The funds raised will be used to facilitate payments to contractors executing road projects under TARURA, ensuring timely project completion," said Nsekela.

Investors in the Samia Infrastructure Bond will receive an annual interest rate of 12%, paid quarterly on February 10, May 10, August 10, and November 10. The first interest payout is scheduled for May 10, 2025.

Part of a Long-Term National Investment Plan

The Samia Infrastructure Bond is the second phase of CRDB Bank’s Five-Year Medium-Term Note Program, approved by the Capital Markets and Securities Authority (CMSA) in 2023, aiming to raise USD 300 million.

The first phase, Kijani Bond, launched in 2023, was the largest green bond in Sub-Saharan Africa, exceeding expectations by raising TZS 171.82 billion, surpassing the TZS 40 billion target by 429.6%.

Strengthening Road Infrastructure and Capital Markets

TARURA CEO, Engineer Victor Seff, highlighted that this partnership with CRDB Bank is a major breakthrough in securing funding for road projects.

"We have numerous projects underway, and funding availability has always been a challenge.
With these funds, contractors will now receive timely payments, ensuring efficient project completion," said Engineer Seff.

CMSA CEO, CPA Nicodemus Mkama, noted that the listing of the Samia Infrastructure Bond on the Dar es Salaam Stock Exchange (DSE) has increased the value of corporate bonds by 38.9%, reaching TZS 1.16 trillion, up from TZS 837.31 billion.

"This bond demonstrates the strength of our capital markets, positioning the DSE as a key player in financing Tanzania’s infrastructure development," said Mkama.

Following the bond sale, Samia Infrastructure Bond was officially listed on the DSE, allowing late investors to participate while earning a 12% annual return over the five-year period.

DSE CEO, Peter Nalitolela, highlighted the growing number of Tanzanians participating in capital markets, expressing optimism for continued growth.

"The success of listed companies reflects the overall health of our stock market. We are encouraged to see increasing participation from individual and institutional investors," said Nalitolela.

With this milestone, CRDB Bank continues to strengthen its position as a key player in Tanzania’s financial sector, supporting national development goals through