Premier Girls Secondary School in Tanzania has become the first non-financial entity in the country to issue a Sukuk, a type of Islamic financial instrument.
Sukuk is a sharia-compliant bond-like instrument that involves a direct asset ownership interest, while bonds are indirect interest-bearing debt obligations.
The Sukuk, structured and led by Tanzanian investment advisor and securities dealer Yusra Sukuk Company, amounted to TZS 1.2 billion (approximately USD 464,707).
It carries a five-year tenor and offers a profit rate of 8.75% per annum.
The issuance was privately placed to institutional investors, primarily financial institutions.
ZIC Takaful Company provided a guarantee covering the entire TZS 1.2 billion, minimizing investors’ risk.
The proceeds from the Sukuk issuance will fund the school’s health center, benefiting the school community and surrounding villagers.
This Sukuk issuance is categorized as socially responsible investment (SRI) Sukuk, aligning with Sustainable Development Goals (SDGs) such as good health, quality education, and gender equality.
Additionally, it marks the first asset-backed Sukuk to originate from Tanzania, utilizing a special purpose vehicle (SPV) structure.
Islamic Bonds (Sukuk) in Tanzania
In 2021, Imaan Finance issued the first Sukuk bonds in Tanzania. The bond was approved by Tanzania’s Capital Markets and Securities Authority (CMSA).
Imaan Finance sought to collect TZS 2 billion but received a total of TZS 2.72 billion in bids, with an oversubscription of 36%, showing the country’s appetite for this product.
Want to know more about the Capital Markets in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers the Capital Markets, plus regulations, key sectors, and investment opportunities — all in one place.
Download Free Guide