Tanzania to Issue Eurobonds to Finance Infrastructure

The Tanzanian Minister for Finance and Economic Affairs, Dr William Mgimwa confirmed the government intentions to issue Eurobonds to finance its infrastructure development in the country.

The financing is especially aimed at road and rail networks projects.

According to Dr Mgimwa’s recent announcement, the government is keen to execute the issuing later this year or next year provided certain technical matters are worked out.

Previous announcements were made about the government’s intention to issue Eurobonds when earlier in 2012 the Directorate of Presidential Communication made public an agreement in principle with HSBC to facilitate the process of issuing between USD 700 Million and USD 1 Billion to finance infrastructure projects.

The Eurobonds are said to have a pay-back period of between 50 and 60 years.