THE Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA)’s Water Infrastructure Green Bond, the first ever Sub-national bond to be issued in East Africa, has been oversubscribed by 103 percent.

The green bond, worth 53.12bn/-, and launched on 22nd February 2024, was successfully listed at the Dar es Salaam Stock Exchange (DSE) on 15th May 2024. 

It performed impressively with 65 percent of the collection being from local investors while attracting 35 percent of foreign investors. 

This is a clear indication of the growing interest in sustainable investment and the confidence of international investors in the Tanzania market.

Nicodemus Mkama, Tanzania Capital Market and Securities Authority (CMSA) chief executive officer (CEO) said: “Successful issuance and listing of Tanga Water Bond solidifies the position of Tanzanian capital markets on the map of global capital markets that offer innovative and sustainable financing products attracting both domestic and international investors.

He further urged other subnational institutions and municipalities to emulate the path taken by Tanga UWASA, in financing revenue-generating projects through capital markets.”

 “The listing of the TANGA UWASA bond demonstrates the power of collaboration between the public and private sectors, as well as the commitment of stakeholders to make investments that generate financial returns and positive impacts on society and the environment. Therefore, DSE invites public institutions, companies, and the private sector to continue this path of raising capital aimed at promoting and building a competitive economy for the development of people” said Mary Mniwasa, the Chief Executive Officer of DSE.

Minister for Works, Innocent Bashungwa on behalf of Finance Minister Dr. Mwigulu Nchemba said the event is a clear testimony that the Alternative Project Financing Strategy (APF) launched by the government in May 2021 is doable not only to corporates, but also to Government institutions. 

“The ministry of Finance will keep on following up to ensure that this project is successfully implemented as planned,” he said.

Minister for Water Jumaa Aweso said: “Financing needs for water infrastructure across the nation is still very high. Competing government priorities, and limited budget, result in delays in project implementation. Bond issuance such as this one complements government efforts and expedites the provision of water services to the citizens. I urge other water utilities to learn from the Tanga UWASA bond and commence replication in their localities”.

Peter Malika, Head of United Nations Capital Development Fund (UNCDF) in Tanzania congratulated the government for achieving this historic milestone.

He added: “Our significance and support as a development finance institution has resulted in clearing and clarifying technical and policy hurdles that existed before this transaction so that future transactions can use Tanga UWASA’s bond as a national template, fit for replication and taking to scale to other sectors such as energy, agriculture, health, education, income generation, and productive sectors. I want to recognize the National Municipal Bond Taskforce, with this team we have built and entrenched lasting cross-cutting national capacities that ought to be emulated as a winning formula in other initiatives”.

Eng. Geofrey Hilly, Tanga UWASA managing director emphasized its significance in advancing sustainable water infrastructure and environmental conservation, extending gratitude to investors, partners, and stakeholders for their unwavering support and trust.

Other stakeholders involved in preparations of the Tanga water green bond include NBC Bank (lead transaction advisor), FSD Africa (supported green framework), FIMCO and Global Sovereign Advisory (financial & investment advisory), ALN Tanzania (legal advisor), Innovex (reporting accountant), Vertex International Securities (stockbroker) and ISS Corporate Solutions (second-party opinion provider).