Tanzania’s CRDB Bank Listing Of Sukuk Islamic Bond Raises TZS 125.4 Billion And USD 32.3 Million With 418% And 646% Oversubscription

CRDB Bank has announced that its Al Barakah Sukuk, listed on the Dar es Salaam Stock Exchange (DSE), raised TZS 125.4 billion and USD 32.3 million after surpassing its original targets of TZS 30 billion and USD 5 million with oversubscriptions of 418% and 646%.

The Bank confirmed that the Sukuk attracted more than 1,000 investors, including individuals, institutions, religious groups, and international participants from over seven countries.

More than TZS 70 billion was invested by individual Tanzanians, while over TZS 50 billion came from international investors.

The issuance forms part of the Bank’s long-term plan to mobilize USD 300 million over five years through Shariah-compliant instruments to support development projects, expand financing for small and medium enterprises, and broaden financial inclusion.

The Sukuk’s listing provides investors with access to a regulated secondary market for trading and long-term ethical investment opportunities.

The Deputy Permanent Secretary in the Ministry of Finance, Dr. Elijah Mwandumbya, officiated the listing ceremony and described the achievement as a milestone for the country’s capital markets.

He said the performance demonstrates market maturity and the strong appetite for innovative investment products.

He also noted that the Government is finalizing dedicated Islamic finance legislation aimed at improving transparency, enhancing investor protection, and positioning the country as a competitive centre for Shariah-compliant finance in Africa.

CRDB Bank Group CEO and Managing Director, Abdulmajid Mussa Nsekela, said the results exceeded expectations and reflect confidence from local and international investors.

He noted that the strong participation by Tanzanians indicates rising financial literacy and trust in domestic markets.

He added that the Bank’s objective is to continue issuing Shariah-compliant instruments to mobilize funds for development and promote inclusive finance.

Representing the Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Exaud Julius said the success of the issuance reflects policy measures aimed at strengthening the investment environment.

He stated that the Sukuk’s listing has increased total market capitalization on the Dar es Salaam Stock Exchange to TZS 13.7 trillion from TZS 13.5 trillion and contributed to growth in the number of domestic and foreign investors.

DSE’s CEO, Peter Nalitolela, said the oversubscription demonstrates investor confidence in the regulatory framework.

He noted that the listing is expected to enhance liquidity, broaden market participation, and strengthen the country’s position in relation to global Islamic finance centres such as Kuala Lumpur, Dubai, Riyadh, and Manama.

The Chairperson of the CRDB Bank Board of Directors, Professor Neema Mori, said the investor response reflects the Board’s commitment to innovation, strong governance, and expanding opportunities for ethical and inclusive finance.

She highlighted the trust shown by local and international investors, including partners such as British International Investment.

The Chairperson of the Shariah Advisory Board for Al Barakah, Abdul Mohammed, described the Sukuk as a transformative step for the country.

He welcomed progress toward establishing national Islamic finance legislation and said the framework will enable the country to engage with liquid markets such as the Gulf Cooperation Council.

Sukuk Development in Tanzania

The development of Sukuk in Tanzania began in the early 2020s with the first public issuance on the Dar es Salaam Stock Exchange (DSE), the Fursa Sukuk, which was launched in 2022 by KCB Bank Tanzania through its Sahl Banking window.

In 2023, the Capital Markets and Securities Authority (CMSA) began developing Sukuk and Islamic finance guidelines to support the introduction of Shariah-compliant financial products.

In April 2024, Premier Girls Secondary School became the first non-financial entity in Tanzania to issue a Sukuk, amounting to TZS 1.2 billion and structured by Yusra Sukuk Company.

In May 2025, the Government of Zanzibar issued the Zanzibar Sukuk, the first Islamic bond from a Tanzanian government entity, which was listed on the DSE and oversubscribed by more than 127%.

In August 2025, CRDB Bank launched the CRDB Al Barakah Sukuk, part of the bank’s intention to mobilise capital for ethical and sustainable projects in Tanzania and the wider East African region.