Tanzania's Treasury bond auction oversubscribed as IFC launches offshore shilling bond

The Bank of Tanzania’s two‑year Treasury bond auction attracted competitive bids totalling about TZS 438 billion, more than three times the amount on offer, and was oversubscribed by TZS 326 billion. The weighted‑average yield settled at 8.40%, below the 9.5% coupon, showing strong demand from banks, pension funds, insurers and other institutional investors.

In parallel, the International Finance Corporation listed a TZS 262.5 billion ($100 million) shilling‑denominated bond on the London Stock Exchange, the first such offshore instrument for Tanzania. The AAA‑rated IFC paper channels the proceeds to NMB Bank Plc for micro, small and medium‑enterprise lending, with 20 % of funds earmarked for women‑owned businesses. The structure transfers sovereign risk to IFC while giving European investors exposure to the Tanzanian shilling.