- National Bank of Commerce (NBC) in Tanzania has listed a gender bond on the Dar es Salaam Stock Exchange.
- The NMB Jasiri gender bond is the first gender bond to list on an exchange in Africa.
- The bond was 197% over-subscribed raising USD 32 million which shows great appetite for gender bond issuances and sets a new benchmark for the continent in developing financial instruments specifically targeting gender empowerment.
Proceeds from the NMB Bank Gender Bond will finance more than 2,000 women-owned small and medium-sized businesses in Tanzania to grow and create jobs. Currently, 75 percent of women-owned businesses in Tanzania don’t have access to the finance they need due to challenges including lack of collateral or limited awareness of available financial products.
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The International Finance Corporation (IFC) subscribed to 31 percent of the bond (equivalent to $10 million in Tanzanian shillings).
“IFC is proud to support this landmark bond issuance in sub-Saharan Africa and to grow our partnership with NMB Bank. Expanding access to finance for more women-led businesses will create jobs and enhance sustainable economic growth in Tanzania,” said Sérgio Pimenta, IFC Regional Vice President for Africa.
“IFC’s investment in Jasiri Bond is a true testament of investors’ confidence in the Bank’s vision and support for the positive impact NMB is making in promoting socio-economic empowerment in Tanzania. Through the Jasiri Bond, the Bank will extend affordable financing for women-owned or women-controlled enterprises and/or businesses whose products or services directly impact a woman,” said Ruth Zaipuna, Chief Executive Officer, NMB Bank.
Author: Bryan Groenendaal
