CRDB Bank has launched the Al Barakah Sukuk, an Islamic bond compliant with Sharia principles, targeting TZS 30 billion and USD 5 million, with a green-shoe option that could increase the totals to TZS 40 billion and USD 7 million.
The issuance, part of the bank’s five-year USD 300 million Medium-Term Note Programme approved by the Capital Markets and Securities Authority (CMSA), is intended to expand financial inclusion and mobilise capital for ethical and sustainable projects in Tanzania and the wider East African region.
The bond offers quarterly profit distributions at 12% per annum for Tanzanian shilling investments and 6% for US dollar investments.
It is open to retail investors, institutions, the Tanzanian diaspora, and foreign investors, with a minimum subscription of TZS 500,000 or USD 1,000.
Subscriptions close on September 12, 2025, after which the Sukuk will be listed on the Dar es Salaam Stock Exchange.
British International Investment (BII) is participating as the anchor investor with a USD 15 million commitment.
During the launch, retired President Jakaya Kikwete said the initiative provides investment opportunities for those who have previously been excluded from conventional interest-based products due to religious beliefs.
CRDB Group CEO and managing director Abdulmajid Nsekela explained that the funds raised will support projects in healthcare, halal agribusiness, education, and environmentally friendly manufacturing, emphasising the bank’s strategy to align financial services with ethical investment principles.
Sharia Advisory Board chairman Abdul Van Mohamed said the board will continue providing oversight to ensure the product remains compliant with Islamic finance principles while promoting innovation.
Deputy Governor for Financial Stability and Sector Supervision at the Bank of Tanzania, Sauda Msemo, noted that Sharia-compliant banking in Tanzania has expanded significantly, with the number of accounts rising from 223,081 in June 2020 to 809,105 in June 2025, and deposits increasing from TZS 440 billion to TZS 1.4 trillion.
She also highlighted recent regulatory reforms to strengthen the sector, including amendments to key banking laws and the finalisation of the Non-Interest Banking Business Regulations, expected to take effect in the coming months.
The CRDB Al Barakah Sukuk is the third tranche under the bank’s Medium-Term Note Programme, following the Kijani Bond and the Samia Infrastructure Bond, both of which were oversubscribed.
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