The Bank of Tanzania (BoT) has reopened a two-year Treasury bond auction offering investors an annual coupon rate of 9.5 per cent, with both Tanzanian and foreign investors eligible to participate.
The auction, scheduled for November 4, 2026, provides an opportunity for investors to put their money into government securities, with a minimum investment of TZS1 million.
According to an auction notice issued by the central bank, the bond, identified as Treasury Bond No. 712, Auction No. 2, will mature on July 30, 2028.
Investors will receive interest payments twice a year, on January 30 and July 30, at an annual coupon rate of 9.5 per cent.
The notice also sets accrued interest at TZS2.5507 for every TZS100 invested, reflecting interest accumulated since the bond's previous coupon payment.
The reopening allows investors to purchase additional securities under an existing government bond rather than wait for a new issuance.
Treasury bonds are government borrowing instruments through which the State raises money from investors to finance its spending requirements.
In return, investors receive periodic interest payments, with the principal repaid when the bond reaches maturity, in accordance with its terms.
The two-year instrument offers an investment option for individuals and institutions seeking relatively predictable interest income over a defined period.
The minimum investment requirement of TZS1 million provides an entry point for individual investors, while the inclusion of non-residents broadens participation in Tanzania's domestic government securities market.
However, the 9.5 per cent coupon rate should not be confused with the actual yield earned by an investor. The effective return depends on the price paid for the bond, accrued interest and other applicable transaction costs.
The Bank of Tanzania has encouraged interested investors to obtain further auction details through its official website, www.bot.go.tz.