A three-year bond worth Sh41.4 billion of the National Microfinance Bank (NMB) was yesterday listed on the Dar es Salaam Stock Exchange (DSE).
"The three-year bond is not only a major development in the sector but also in the retail market," NMB managing director Ineke Bussemaker said.
According to Ms Bussemaker, the high response to the NMB bond reinforces the need for banks to play a bigger role in developing capital markets and promoting financial inclusion.
The permanent secretary in the Ministry of Industry, Trade and Investment, Dr Adelhelm Meru, urged other investors in the private sector to join the capital market. "This retail bond is expected to facilitate the development of the retail bond market and open doors for other private companies, state-owned enterprises and municipalities to explore new methods to meet their financing needs."
He said businesses could use retail bonds to raise capital. However, he called on NMB to lower its lending rates.
