AS it celebrates its 30th anniversary, CRDB Bank marks yet another milestone with the resounding success of the Samia Infrastructure Bond, surpassing its initial target by 115 percent and raising 323bn/-, more than double its original goal of 150bn/-.

Mohamed Mchengerwa, the Regional Administration and Local Governments state minister in the President’s Office (PO-RALG), commended CRDB Bank for this remarkable achievement, emphasizing the significance of the 323bn/- raised, which more than doubles the initial target of 150bn/-.

Achieved within just one and a half months, this success reflects strong investor confidence in CRDB Bank, reinforcing its position as a leading financial institution in Tanzania, he said.

Named in honour of President Samia Suluhu Hassan, the bond underscores CRDB Bank’s commitment to national economic growth and individual prosperity. The funds raised will support the timely completion of urban and rural road infrastructure projects, benefitting citizens across the country.

The minister praised the bond’s success, highlighting the crucial role of public-private partnerships (PPP) in addressing infrastructure challenges faced by citizens, businesses and investors.

"The Samia Infrastructure Bond is a clear example of how government-private sector collaboration can drive national progress. The 323bn/- raised offers great hope for future infrastructure development, particularly in road construction,’ he declared, commending CRDB Bank for this innovative approach in supporting government initiatives to improve citizens' lives.

From its launch on November 29 to its closing on January 17 the bond attracted 327 companies and institutions which invested over 118.99bn/-, alongside 6,896 individual investors, who collectively contributed 204.1bn/-. Notably, 94 percent of the total funds were raised through the CRDB Bank SimBanking platform.

CRDB Bank CEO Abdulmajid Nsekela emphasized that the bond’s success highlights the investment capacity of Tanzanians and local businesses, as well as their trust in CRDB Bank. "This achievement demonstrates the strong investment potential within our market. Investors showed great enthusiasm, knowing that their funds are secure with a well-structured project. We take immense pride in earning the trust of Tanzanians," he stated.

The successful execution of this initiative was a result of CRDB Bank’s collaboration with PO-RALG through the Tanzania Urban and Rural Roads Agency (TARURA). This partnership is set to significantly impact infrastructure development, ensuring Tanzanians benefit from improved road networks, he said.

"We attracted a large number of private investors due to the minimum investment threshold of just 500,000/-. All funds raised will go toward financing contractors executing projects under TARURA’s upcoming tenders. We believe this will greatly facilitate the timely completion of infrastructure projects," he asserted.

CRDB Bank also guarantees a 12percent annual return, paid quarterly, throughout the bond’s five-year tenure, ensuring sustained investor benefits. "Interest payments will be made on February 10, May 10, August 10 and November 10. For this year, they will start receiving profit payments on May 10," the CEO noted.

The Samia Infrastructure Bond marks the second phase of the CRDB Bank five-year medium-term note programme, approved by the Capital Markets and Securities Authority (CMSA) in 2023, aiming to raise $300m (750bn/-). In 2023, CRDB Bank launched the Kijani Bond, the first green bond in Sub-Saharan Africa, which exceeded its target by 429.6 percent raising 171.82bn/- instead of the planned 40bn/-.

"Kijani Bond was the first tranche of our Five-Year Plan, and Samia Infrastructure Bond is the second. Just like Kijani Bond, we have again exceeded expectations, reaffirming investor confidence in CRDB Bank," he explained.

TARURA CEO Victor Seff emphasized that the partnership between CRDB Bank and TARURA will accelerate road infrastructure projects across Tanzania. "We have many ongoing projects nationwide, but financing has always been a challenge. Now, contractors will receive timely payments, ensuring projects are completed as planned," he stated.

On his part, CMSA CEO Nicodemus Mkama said that the listing of the Samia Infrastructure Bond has increased the value of investments in corporate and institutional bonds by 38.9 percent, reaching 1.16trn/- from 837.31bn/-.

“The Samia Infrastructure Bond is a clear reflection of the strength of our capital markets, positioning the Dar es Salaam Stock Exchange as an integral player in facilitating investment in Tanzania’s national infrastructure projects,” he remarked.

Following the bond sale, Samia Infrastructure Bond has been listed on the Dar es Salaam Stock Exchange (DSE), allowing late investors to participate while benefiting from the 12 percent annual interest rate.

DSE CEO Peter Nalitolela highlighted the growing interest of Tanzanians in capital markets, predicting sustained market growth and greater economic benefits. "The success of companies listed on the exchange contributes to the overall strength of the financial market. We are pleased to see initiatives like the Samia Infrastructure Bond bringing prosperity to investors and the country," he added.