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The Bank of Tanzania (BoT) has reopened a 15-year Treasury bond carrying an annual coupon rate of 12.25 percent, giving investors another opportunity to put their money into a government security with maturity in 2041.
The bond, identified as Treasury Bond No. 696, Auction No. 3, will be auctioned on September 30, 2026, with the maturity date set for February 19, 2041.
The minimum investment has been set at TZS1 million, meaning individual investors can participate alongside institutional investors.
The bond will pay interest twice a year, on February 19 and August 19, while the accrued interest is TZS1.4432 for every TZS100.
The BoT said all investors, including non-residents, are eligible to participate in the auction.
The reopening comes as the government continues to use the domestic financial market to raise funds through Treasury securities, while providing investors with an avenue to earn periodic returns.
For investors, the 12.25 percent coupon rate means a holder of TZS1 million in face value would receive TZS122,500 in annual coupon interest, paid in two instalments, before taking into account the purchase price, accrued interest and any applicable taxes or transaction costs.
However, the coupon rate should not be confused with the investor's actual yield. The final return depends on the price paid for the bond and other factors, including how long the investor holds the security.
The bond's long maturity also means investors should consider their liquidity needs before committing funds. Those who do not wish to hold the bond until 2041 may seek to sell it in the secondary market, where the price can fluctuate with prevailing interest rates and market conditions.
The auction is therefore relevant to investors looking for longer-term fixed-income opportunities, while the relatively low entry point of TZS1 million allows smaller investors to participate in the government securities market.
The BoT has invited eligible investors to participate in the auction through the prescribed procedures.
The announcement is part of activities marking the central bank's 60th anniversary, commemorating its establishment in 1966.