TANZANIA · BONDS
Key Facts
- —What is happening I&M Bank Tanzania listed its five-year Hatua Bond on the Dar es Salaam Stock Exchange on Thursday 15 October, after bids of TZS 161.38 billion (about US$61.3 million) met a TZS 20 billion (about US$7.6 million) plan.
- —Why it matters Bids reached 8.07 times the plan, and 95.48% of the investors were individuals, which points to strong appetite among ordinary Tanzanians for corporate debt, not only for government paper.
- —The numbers The bank accepted TZS 100 billion (about US$38.0 million), pays a fixed 13% a year in quarterly coupons, and scheduled refunds of TZS 61.38 billion (about US$23.3 million) to investors who were scaled back.
- —Who is who I&M Bank Tanzania is the local unit of Kenya’s I&M Group; the Capital Markets and Securities Authority (CMSA) regulates the market, and iTrust Finance Limited was lead adviser and sponsoring broker.
- —What to watch Watch for first trading of the bond on the exchange, for which no date has been confirmed, and for whether I&M seeks a new programme after one tranche used the whole TZS 100 billion (about US$38.0 million).
- —What it means for you The deal is small and priced in local currency, so it will not move US portfolios, but it gauges local appetite for debt, and only 4.27% of the investors were foreign.
Bids for I&M Bank Tanzania’s Hatua Bond reached 8.07 times the plan. The bank took TZS 100 billion (about US$38.0 million) and listed the bond on Thursday 15 October.
The I&M Bank Tanzania bond drew TZS 161.38 billion (about US$61.3 million) in bids, 8.07 times its plan. The bank wanted TZS 20 billion (about US$7.6 million) and listed the bond, called Hatua, on Thursday 15 October.
It accepted TZS 100 billion (about US$38.0 million), the full size of its note programme, and scheduled refunds for the rest. The Capital Markets and Securities Authority (CMSA), the market regulator, calls it the most oversubscribed corporate bond in the country’s history.
I&M Bank Tanzania is a unit of Kenya’s I&M Group, which said in January that its overall stake is 95.5%. The lead transaction adviser and sponsoring broker was iTrust Finance Limited, with Joachim & Jacobs Attorneys as legal adviser.
How the Tanzania Bond Was Sold and Allotted
The CMSA approved a TZS 20 billion (about US$7.6 million) first tranche on Wednesday 22 July. It formed part of a TZS 100 billion (about US$38.0 million) five-year programme of medium-term notes.
The offer opened on Monday 3 August and closed on Friday 4 September, the bank’s public notice says. The notice, dated Friday 25 September, puts applications at TZS 161.38 billion (about US$61.3 million), or 806.92% of plan.
With CMSA approval, the bank accepted TZS 100 billion (about US$38.0 million), the full amount authorised under its programme. That is five times the planned TZS 20 billion (about US$7.6 million), and larger applicants were scaled back to make it fit.
Applicants received 100% of any amount up to TZS 200 million (about US$76,000) and 43.09% of anything above it. A bid of TZS 1 billion (about US$379,800) would therefore have received TZS 544.7 million (about US$206,900), by newsroom arithmetic.
Refunds of TZS 61,383,181,343 (about US$23.3 million) were due by bank transfer on Monday 28 September. The bond was issued on Monday 21 September and matures on 21 September 2031.
The bank’s own FAQ had allowed a greenshoe, an extra TZS 5 billion (about US$1.9 million), if demand beat the plan. Daily News and Michuzi say the programme was meant to be issued in four phases between 2026 and 2029.
Conversions use TZS 2,632.82 per US$1, the open.er-api.com rate of 16 October 2026 (00:02 UTC). Every US$ value here is rounded.
What the Bond Pays and Who Bought It
The bond pays a fixed 13% a year, in quarterly coupons on 21 March, 21 June, 21 September and 21 December. On the TZS 100 billion (about US$38.0 million) accepted, that is TZS 13 billion (about US$4.9 million) a year, by newsroom arithmetic.
The minimum purchase is TZS 500,000 (about US$190), in steps of TZS 10,000 (about US$3.80). The bank’s FAQ says there is no withholding tax on the interest and that the bond is payable only in Tanzanian currency.
The bond is senior and unsecured, meaning no specific asset backs it. The notice names three uses: lending to companies, individuals and small firms, longer-term funding, and technology and digital platforms.
Mwananchi says I&M Bank Tanzania chief executive Zahid Mustafa linked the response to confidence in the bank’s strategy and Tanzania’s economy. Professor Mohamed Warsame, a director of iTrust Finance, said the demand shows investors want steady returns.
CMSA chief executive Nicodemus Mkama said 95.48% of investors were individuals and 4.52% institutions, Daily News and Michuzi report. He put domestic investors at 95.73% and foreign investors at 4.27%.
How the Result Compares
Daily News and Michuzi say the earlier record was the iTrust Bond, which raised TZS 114.12 billion (about US$43.3 million). It was subscribed at 760.78%, and Daily News adds that it listed on the DSE on 8 July.
CMSA chief executive Nicodemus Mkama called Hatua the most oversubscribed corporate bond ever issued in Tanzania, Daily News reports. He credited investor confidence, supportive government policies and regulatory measures.
Daily News lists no withholding tax on corporate bond interest among the measures, and Michuzi speaks of tax incentives. Both add quarterly rather than half-yearly interest and a TZS 500,000 (about US$190) minimum, cut from TZS 1 million (about US$380).
Mkama said listings lifted the value of corporate and institutional bonds on the DSE by 4.48%, both papers report. That is a rise from TZS 2.23 trillion (about US$847 million) to TZS 2.33 trillion (about US$885 million).
A five-year Treasury bond that the Bank of Tanzania, the central bank, offered on Wednesday 29 April carried a 10.25% coupon. Hatua pays 13%, but the April offer is not an October yield, so this is only a rough yardstick.
What It Means for US Readers
The deal is small, priced in local currency and drew mostly Tanzanian individuals, so it will not move US portfolios. It is still a gauge of how deep Tanzania’s local debt market has become.
At about US$38.0 million, it is a fraction of a typical US investment-grade bond issue, which often runs to hundreds of millions. Only 4.27% of the investors were foreign, so overseas buyers played a small part.
A dollar-based investor would carry currency risk, because the coupon and the principal are paid only in Tanzanian currency. The shilling was quoted at about TZS 2,632.82 per US$1 on 16 October, and its path over five years is unknown.
What Is Not Known
The bank’s notice, Mwananchi, Daily News and Michuzi give the same core figures, but the newsroom could not open the information memorandum. The DSE website showed no listing notice, and no source gives a ticker, first trading date or price.
The 95.48% and 4.27% shares are given as shares of investors, so the amount each group bid is not known. No source gives the foreign bids in TZS or US$.
The rise in listed corporate bonds, TZS 100 billion (about US$38.0 million), equals the accepted amount, by newsroom arithmetic. Neither paper says that Hatua explains the whole rise.
The sources do not explain why the bank took five times its plan, beyond the notice’s reference to CMSA approval. They also do not say whether I&M will seek a new programme.
None of the documents opened gives a credit rating for the bond. The newsroom did not examine the bank’s accounts, so its profit and capital are not assessed here.
What Comes Next
The next test is trading on the DSE, where holders can sell before 21 September 2031 if buyers appear. The next coupon falls due on Monday 21 December, by the bank’s schedule.
Listing does not guarantee that buyers will be available at any given price. It also does not change the bank’s obligation to pay 13% a year until maturity.
Frequently Asked Questions
What is the I&M Hatua Bond?
It is a five-year, senior unsecured bond issued by I&M Bank Tanzania that pays a fixed 13% a year in quarterly coupons. It listed on the Dar es Salaam Stock Exchange on Thursday 15 October.
How much did investors bid and how much did the bank accept?
Applications reached TZS 161.38 billion (about US$61.3 million), or 806.92% of the TZS 20 billion (about US$7.6 million) plan. The bank accepted TZS 100 billion (about US$38.0 million) and scheduled refunds of TZS 61.38 billion (about US$23.3 million).
Who bought the bond?
CMSA chief Nicodemus Mkama said 95.48% of investors were individuals and 4.52% institutions, and 95.73% were domestic and 4.27% foreign. These are shares of investors, so the amount each group bid is not known.
Is this a government bond?
No, it is corporate debt issued by a bank, not a Treasury bond sold by the Bank of Tanzania. A five-year Treasury bond offered on Wednesday 29 April carried a 10.25% coupon, against 13% on Hatua.
Why does this matter to Americans?
At about US$38.0 million the deal is too small to move US portfolios. It shows deep local appetite for debt, but only 4.27% of the investors were foreign.
Sources: I&M Bank (T) Limited, Hatua Bond public offer results and allocation announcement, 25 September 2026; I&M Bank Tanzania, Hatua Bond FAQ; Mwananchi (Swahili), 15 October 2026; Daily News, 15 October 2026; Michuzi Blog, 15 October 2026; Bank of Tanzania, five-year Treasury bond invitation, April 2026; I&M Group, acquisition of additional shares in I&M Bank (T) Limited, 13 January 2026; open.er-api.com exchange rates (all accessed 16 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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