On April 29, the Luxembourg Stock Exchange (LuxSE) welcomed the return of representatives from NMB Bank Plc to commemorate the listing of the Tanzania-based bank’s dual-currency sustainability bond, marking their second listing on the exchange.
NMB Bank’s sustainability bond finds its place on the Luxembourg Green Exchange (LGX), the global leader for sustainable securities. “Mobilizing financing for sustainable development in Africa has become a key priority for our exchange. We are delighted to mark this landmark sustainability bond listing with NMB, and we are committed to continuing in our shared mission of fostering sustainable finance in the region and contributing to closing the funding gap,” said Julie Becker, CEO of LuxSE.
Building on gender financing
This isn’t the first time NMB Bank has made waves at LuxSE. On March 8 2023, in celebration of International Women’s Day, LuxSE proudly announced the admission of NMB Bank’s gender bond, known as the “Jasiri” bond, meaning “brave” in Swahili, onto the LGX platform. This landmark issuance marked Sub-Saharan Africa’s inaugural gender bond and raised $32m, providing nearly 3,000 women in Tanzania with access to crucial financing for entrepreneurship and business growth.
The “Jamii” bond, marks a significant milestone, not just for NMB Bank but also for East Africa, as it pioneers the region’s first expedition into sustainable financing on such a grand scale.
The NMB “Jamii” bond holds two tranches, one denominated in USD and the other in TZS, and has successfully raised approximately $157m. The allocation of these funds will focus on strengthening resilience against climate change and channelling investments into renewable energy, sustainable agriculture, gender equality, and youth empowerment, among other social and environmental projects.
Empowering inclusive growth
NMB Bank stands as one of Tanzania’s largest commercial banks, playing a key role in the nation’s socio-economic advancement over the past 26 years. The institution has consistently taken initiatives aligned with Tanzania’s National Development Plan 2025/2050 and the United Nations Sustainable Development Goals. These initiatives span across various sectors, including the green and blue economy, agriculture, education, health, gender equality, and industrialization.
The sustainability bond not only solidifies NMB Bank’s commitment to sustainable development but also provides a tangible avenue for financing projects outlined in the bank’s sustainable financing framework, established in August 2023. “The issuance of the first Gender Bond in Sub-Saharan Africa in 2022, the NMB Jasiri Bond, and now the first sustainability bond in East Africa, the NMB Jamii Bond, that we are cross-listing today at the LuxSE and LGX, attest to our commitment of advancing sustainable development and promoting responsible investment practices, with the assurance of rigorous impact assessment and transparent reporting,” said Ruth Zaipuna. CEO of NMB.
By dual-listing the bond on both LuxSE and the Dar es Salaam Stock Exchange (DSE), NMB Bank ensures local and international investors alike have the opportunity to contribute to impactful initiatives within Tanzania.
“Being a domestic bond with both retail and institutional investors’ participation, the NMB Jamii bond has provided investment opportunities for retailers to invest and trade in the bond in lower denomination. This has not only stimulated the development of our local capital markets but also provided the much-
Ruth Zaipuna, CEO of NMB.
needed financial inclusion and access.”
Global support
The introduction of the NMB “Jamii” bond has gathered substantial interest from investors worldwide, with both local and international financiers eager to support sustainable development in East Africa. Notable investments came from prominent development finance institutions such as the International Finance Corporation (IFC), the Netherlands’ FMO, and the UK’s British International Investment (BII), highlighting the global resonance of NMB Bank’s sustainability efforts.
NMB Bank’s introduction of the NMB “Jamii” bond displays a commitment to sustainable finance and community-driven impact. With this initiative, the bank not only sets a precedent for sustainable investment in East Africa but also reaffirms its dedication to supporting inclusive growth and gender equality.
