I&M Bank Tanzania's Hatua Bond has raised 161.38 billion shillings, the largest corporate bond offering ever in Tanzania. The bond was oversubscribed by 806.92 per cent, meaning investors wanted to buy more than eight times the targeted 20 billion shillings on offer.
The previous record was held by iTrust Finance Limited's iTrust Bond, which raised 114.12 billion shillings against its target, representing an oversubscription of 760.78 per cent before listing on the Dar es Salaam Stock Exchange in July this year. The strong demand for the Hatua Bond reflected investor confidence and supportive government policies for capital markets growth.
Individual investors made up 95.48 per cent of participants, while institutions accounted for 4.52 per cent. Domestic investors represented 95.73 per cent of demand, with foreign investors making up 4.27 per cent. Measures to boost appeal included removing withholding tax on corporate bond interest and lowering the minimum investment threshold from 1 million shillings to 500,000 shillings. Investors also gained the option to receive interest payments quarterly rather than every six months.
The value of investments in corporate and institutional bonds increased by 4.48 per cent following the bond's listing on the exchange, rising from 2.23 trillion shillings to 2.33 trillion shillings. The listing allowed investors to sell bonds when needed and helped establish market prices.