KCB floats first Islamic bond worth $4.4mln in Tanzania

PHOTO

KCB Bank Tanzania has floated its first Islamic bond worth Tsh10 billion ($4.4 million) to fund its Sahl banking asset portfolio.

The Sharia-compliant paper was opened on November 9 and closes on December 5.

“KCB Fursa Sukuk provides opportunities for Tanzanian and non-Tanzanian individuals, retailers, corporations and institutions to invest in the capital markets for three years at an expected return of 8.75 per cent per annum, quarterly,” KCB Tanzania managing director Cosmas Kimaro said in a statement.

The minimum initiation investment is set at Tsh500,000 (about $218).

The bank will list the paper on the Dar es Salaam Stock Exchange after the ongoing initial public offer.

KCB joins NMB Bank and the National Bank of Commerce in offering bonds this year.

NMB floated its Tsh25 billion ($10.9 million) Jasiri bond to finance women-led businesses, with NBC’s Twiga bond targeting to raise Tsh300 billion ($131 million) for funding small and medium enterprises.