The Bank of Tanzania (BoT) has reopened a five-year Treasury bond carrying an annual coupon rate of 10.25 percent, with the auction scheduled for September 16, 2026.
The reopening of Treasury Bond No. 701, Auction No. 2, gives investors another opportunity to put their money into a government-backed security while earning regular interest.
According to the BoT notice, the bond will mature on April 30, 2031, with coupon payments made twice a year on April 30 and October 30.
The minimum investment has been set at TZS1 million, allowing both individual and institutional investors to participate.
However, investors buying the bond at the reopening will also be required to account for accrued interest of TZS3.9315 for every TZS100 of the bond's face value.
The central bank said non-resident investors are also eligible to participate in the auction.
The 10.25 percent coupon means an investor holding TZS1 million at face value would receive TZS102,500 in annual coupon payments, before considering accrued interest and the price paid for the bond.
Since payments are made twice a year, this translates to TZS51,250 per coupon period for a TZS1 million face-value holding.
Treasury bonds are government securities used to raise funds from investors. In return, investors receive periodic interest payments and the principal amount when the bond matures.
The BoT's latest offer provides savers and investors seeking relatively predictable returns with an option to diversify beyond bank deposits and other investments.
The auction will be conducted on September 16, while the security will run until its maturity in April 2031.