First Offshore Tanzanian Shilling Bond Lists on London Stock Exchange Raising TZS 265.2bn for SME Lending

The International Finance Corporation (IFC) has listed the first offshore Tanzanian shilling bond on the London Stock Exchange (LSE), raising TZS 265.2bn (USD 100m equivalent) in what is both IFC’s inaugural shilling-denominated issue and the largest TZS bond ever placed in international capital markets.

The proceeds fund a local currency financing facility equivalent to USD 100m for NMB Bank, which will on-lend to micro, small and medium-sized enterprises across Tanzania, giving international investors direct shilling exposure without a sovereign issuance.

Of the total, 20%, equivalent to roughly TZS 52.5bn, is earmarked for women-owned MSMEs, and World Bank Vice President and Treasurer Jorge Familiar estimated the financing will support between 13,000 and 20,000 jobs.

Finance Minister Ambassador Khamis Mussa Omar rang the closing bell at the LSE on 24 July 2026 to mark the listing.

It is NMB’s second transaction on the London market, following a social bond in 2023 that raised over TZS 400bn, and the deal is positioned against Vision 2050 and its target of a trillion-dollar economy led by private sector growth.

“This transaction is a strong vote of confidence in Tanzania’s economy and our reform agenda,” said Omar, adding that connecting international capital with local businesses through long-term local currency financing supports entrepreneurship, job creation and private sector growth.

Omar said listing on the LSE improves Tanzania’s borrowing capacity and cost of funds, and that the objective extends beyond the transaction itself.

“Our goal is not only to see this instrument succeed on the international market, but to ensure the results are visible directly in private sector growth, particularly for small and medium traders who are a critical pillar of our economy,” he said.

Mary Porter Peschka, IFC Division Director for Eastern Africa, said the issue connects international investors with Tanzania’s growth story and that mobilising global capital into local currency financing for MSMEs helps businesses invest and create jobs while developing Tanzania’s capital markets.

Ruth Zaipuna, Managing Director and CEO of NMB, said the bank will channel the USD 100m equivalent in long-term shilling financing to MSMEs, including women-owned businesses, “enabling them to invest, grow and create jobs without foreign-exchange risk.”

Familiar said the World Bank measures the transaction by outcome rather than size, estimating that 13,000 to 20,000 people including women will gain employment while international investors gain a route to reach those businesses.

Local currency financing is a stated World Bank Group priority aimed at cutting foreign exchange risk for businesses and investors, and IFC has provided it in more than 65 currencies since fiscal year 2021.

IFC operates in more than 100 countries and committed a record USD 71.7 bn to private companies and financial institutions in developing countries in fiscal year 2025, while the World Bank Group has invested more than USD 1.6 bn in Tanzania across infrastructure, agriculture, capital markets and energy.

NMB Bank Plc is listed on the Dar es Salaam Stock Exchange (DSE) and provides retail, wholesale, and treasury services to individuals, farmers, SMEs, corporates, institutions, and the government, serving more than 10 million customer accounts through over 250 branches.