Tanzania's premier Sukuk sales exceed target on rising investor uptake
TLDR
- Sales of premier Sukuk bonds exceed targets by 61% in two months, driven by increased investor trust in Sharia-compliant capital markets
- 1.94 billion raised between April and May for Premier Girls Secondary health facility and Financial Sector Development Master Plan implementation
- Funds aim to enhance financial resources access for public and private sector development projects, fostering a competitive economy.
Sales of premier Sukuk bonds, which comply with Islamic finance principles, have exceeded targets by 61% in two months, driven by increased investor trust in Sharia-compliant capital and bond markets in Tanzania.
The bond sales reached 1.94 billion between April and May this year, surpassing the initial target of 1.2 billion. The funds raised will be used to establish a health facility for Premier Girls Secondary, the bond's originator.
In addition, the proceeds will contribute to the implementation of the Financial Sector Development Master Plan for 2020/21 to 2029/30. This plan aims to facilitate access to financial resources for public and private sector development projects, thereby building a competitive economy.
Key Takeaways
The enthusiastic response from investors to the Premier Sukuk bond marks significant progress in the service, with 12 Sukuk bonds now approved by the Capital Markets and Securities Authority (CMSA) and sold to a diverse range of investors, including retail investors, groups, institutions, and social security funds. Globally, the issuance of Sukuk bonds, which comply with Islamic finance principles, has been growing at a rate of 15 to 20% per year, with assets currently valued at over $2 trillion.
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