DAR ES SALAAM-The Minister of State, President's Office for Investment and Planning, Hon. Prof. Kitila Mkumbo, hailed CRDB Bank for ushering in a new era of sustainable investment through the launch of the pioneering Kijani Bond. This historic launch event took place today at the Serena Hotel in Dar es Salaam, in the presence of esteemed guests and dignitaries.
In his speech, Hon. Prof. Mkumbo acknowledged CRDB Bank's role in providing local institutions a pathway to harness the transformative potential of green bonds. He highlighted the government's dedication to fostering an enabling environment for investors by enhancing existing policies, laws, and regulations. "CRDB Bank has already set an exemplary precedent," he remarked. The issuance of the Kijani Bond, with its multi-currency Medium Term Note (MTN) Programme of USD 300 million, signifies a monumental stride toward realizing Tanzania's National Financial Sector Development Master Plan 2020/21 – 2029/30, a strategic blueprint to empower both public and private sectors for the greater welfare of the people.
CRDB Bank's Group CEO and Managing Director, Abdulmajid Nsekela, echoed the sentiment that the Kijani Bond is accessible to all, contrary to misconceptions. He affirmed, "This is an investment that even an average Tanzanian can partake in and benefit from, with a minimum initial investment of just 500,000 Tanzanian Shillings." Nsekela underscored the unique proposition of the Green Bond: attractive investment yielding an impressive 10.25% interest per annum. He emphasized the unparalleled stability of this investment, insulating investors from market fluctuations.
The launch of the Green Bond is intrinsically linked with the offer opening, spanning from August 31 to October 6, 2023. Subsequent to this period, the bond will be listed on the Dar es Salaam Stock Exchange (DSE). CRDB Bank anticipates raising 40 billion Tanzanian Shillings during this first phase, which reflects the faith investors place in this innovative financial instrument. The Kijani Bond launch marks a historic moment as CRDB Bank introduces the largest green bond not only in Tanzania but across Sub-Saharan Africa.
"CRDB Bank has often been a pioneer," remarked Dr. Ally Laay, CRDB Bank’s Board Chairman, who expressed deep gratitude to the Capital Markets and Securities Authority (CMSA) and other stakeholders who contributed to the approval of the green bond. Dr. Laay emphasized that both local and international investors have the opportunity to benefit from this bond, as it offers loans in Tanzanian Shillings or US Dollars.
The CEO of the Tanzania Capital Market and Securities Authority (CMSA), Nicodemus Mkama, lauded CRDB Bank for achieving this historic milestone and reaffirmed the alignment of the green bond with international standards. Mr. Mkama remarked, "We expect that Kijani Bond will be instrumental in further developing green financing in Tanzania." The CMSA's endorsement underscores its confidence in CRDB Bank's commitment to sustainable financing and sets the stage for significant growth in climate financing.
Evans Osano, Director, Capital Markets, FSD Africa, said: “The issuing of this trailblazing green bond demonstrates that Tanzania’s rapidly expanding green economy presents huge opportunities for investors, both international and domestic. As the first green bond to be issued in Tanzania, it is also a major moment for the sustainable finance agenda in Africa and we are proud to have been able to provide the technical assistance.”
FSD Africa is providing technical assistance in Kijani Bond issuance, while Stanbic Bank assumes the pivotal role of lead underwriter and book runner for the forthcoming green bond issue, with Denton Tanzania Law Chamber providing legal advisory services. Orbit Securities Tanzania serve as the sponsoring broker, KPMG is entrusted with the responsibilities of the reporting accountant, and Sustainalytics provides a second party opinion.
To invest in the Green Bond, individuals can visit any CRDB Bank branch or authorized broker. Investment forms are available on CRDB Bank's official website www.crdbbank.co.tz, and inquiries can be directed to the Customer Service Center via the toll-free number 0800008000.
The issuance of the Kijani Bond demonstrates CRDB Bank's dedication to environmental, social, and governance (ESG) principles, strengthening its position as a key player in green financing. With a history of sustainable initiatives and recognition from the United Nations Green Climate Fund (GCF), CRDB Bank continues to lead the way in fostering green finance solutions.
About CRDB Bank Plc
CRDB Bank Plc is one of the East Africa’s leading banks, serving individuals, micro, small & middle businesses and large corporations with a full range of Retail, Treasury, Insurance, Trade Finance, Syndications, Premier Banking, Agriculture and Microfinance services.
CRDB Bank is the first bank in Tanzania to be rated amongst the top ten stable and safer to invest African banks by the world’s most respected rating agency, Moody`s Investors Services. Moody`s rated CRDB Bank with a “B1 stable outlook” which is the highest rating to have been acquired by banks or financial institutions in Sub Saharan Africa. UN Green Climate Fund accredits CRDB Bank since November 2019 and Global Finance and Euromoney recognizes it as the Best Bank in Tanzania for the year 2020 and 2022 respectively.
CRDB Bank provides unmatched convenience in Tanzania and Burundi serving more than 4 million customers with a large footprint of 260 branches, 25,000 CRDB Wakala, over 550 ATMs, over 1,800 merchants and a 24/7 Call Centre.