Dar es Salaam, Tanzania, December 13, 2023 -- To widen access to finance for projects driving green, social and sustainability goals in Tanzania, and to increase access to finance for smaller businesses in the country, IFC today announced anchor investments in sustainability bonds issued by NMB Bank.
Proceeds from the bonds will finance or refinance a range of projects in Tanzania that will help protect the environment, decrease greenhouse gas emissions, and contribute to socially responsible initiatives, including renewable energy, energy efficiency, sustainable water and wastewater, green buildings, clean transport, and affordable housing projects.
IFC subscribed to almost 16 percent of the Tanzanian shilling and U.S. Dollar-denominated tranches of the multicurrency bond, equivalent in aggregate to $25 million in Tanzanian shillings. The Tanzanian shilling and U.S. dollar bonds, which were issued on November 12 and December 8, respectively, raised $159 million in total. The bonds align with the 2021 Social Bond Principles of the International Capital Markets Association, which prescribe transparent and accurate reporting to stakeholders.
The bonds will also support small businesses participating in qualifying green and social projects, enabling NMB Bank to increase its number of loans extended to MSMEs by almost 50 percent by 2027. IFC anticipates that at least 3,200 new jobs over four years will be created by projects and businesses funded or co-funded by proceeds from the bonds.
"The NMB Sustainability Bonds reflect our wider values as a bank," said Ruth Zaipuna, CEO of NMB Bank. "We hold strong to our conviction in continuing to grow our business while fulfilling broader development goals in a sustainable manner."
"IFC is proud to back NMB's green, social and sustainability bonds issued in Tanzania," said Mary Porter Peschka, IFC Regional Director for Eastern Africa. "Expanding access for finance for projects and initiatives linked to green and climate-smart development goals will drive inclusive long-term economic growth in the country."
IFC co-anchored the Tanzanian shilling portion of the investment with British International Investment, the UK's development finance institution. IFC's investment in NMB's local currency bond is supported by the International Development Association's (IDA) Private Sector Window Local Currency Facility. It also follows an IFC investment in the bank's Jasiri gender bond issued in 2022, which is financing more than 3,000 women-owned MSMEs in Tanzania and helping bridge access to finance gender gaps.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
