By Alfred Zacharia
The recently listed TCB Stawi Bond at the Dar es Salaam Stock Exchange (DSE) has been oversubscribed by 180.5 percent, underscoring robust investor confidence in Tanzania Commercial Bank (TCB) and its growing role in inclusive financial services.
According to officials, the bond attracted 96.7 percent from individual (retail) subscribers and 3.3 percent participation from companies and institutions.
Again, 99.6 percent were local investors and just 0.4 percent from foreign investors.
The strong demand increased the value of corporate and institutional bonds by 8.2 percent, raising it from TZS 1.7 trillion to TZS 1.8 trillion.
“The Stawi Bond issuance demonstrates the confidence Tanzanians have in TCB. The strong participation by local investors is crucial in enhancing market liquidity and promoting inclusive finance,” said Elijah Mwandumbya, Deputy Secretary-General of the Ministry of Finance, representing the Finance Minister.
The bond is part of TCB’s long-term strategy to mobilize capital for small and medium-sized enterprises (SMEs), women entrepreneurs, and youth, contributing to the broader National Development Vision 2050.
By providing affordable financing, TCB aims to stimulate business growth, create employment opportunities, and strengthen financial inclusion.
“TCB has a century-long history of serving Tanzanians. The Stawi Bond issuance is proof of the bank’s commitment to mobilizing long-term capital to support economic development,” Mwandumbya added.
Adam Mihayo, TCB Chief Executive Officer, said mobilizing over TZS 140.24 billion through the bond indicates strong trust in the bank’s products.
He emphasized that unlike other bonds, the Stawi Bond attracted a diverse mix of medium and small investors, reflecting growing financial literacy and participation in capital markets.
“The strong response demonstrates that when quality financial products are combined with accessible investment opportunities, both the bank and investors benefit,” Mihayo noted.
Nicodemus Mkama, Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), said the Stawi Bond listing highlights significant development in Tanzania’s capital markets.
He explained that increased liquidity and investor participation will improve TCB’s operational capacity, while opening avenues for other public and private institutions to raise funds through capital markets.
“The listing strengthens market efficiency and provides a platform for institutions to diversify funding sources for development projects,” Mkama said.
Officials also highlighted the bond’s benefits for investors.
TCB Stawi Bond allows participants to sell their holdings if needed, discover fair market values, earn coupon payments, and diversify investment portfolios.
Additionally, the listing encourages better corporate governance, transparency, and accountability in financial management.
“This success is a testament to the enabling policy, legal, and operational environment provided by the government and regulators. It reflects investor confidence in TCB and the country’s capital markets,” Mwandumbya concluded.
The successful oversubscription and listing of TCB Stawi Bond mark a milestone for Tanzania’s financial sector, demonstrating the potential of capital markets to drive inclusive growth and support sustainable economic development.
