The National Microfinance Bank (NMB), an institution backed by the government of Tanzania, recently began offering retail bonds in amounts starting at TZS 500,000 (USD 228) with a 13 percent interest rate per annum. The bond issuance, which has been approved by the country’s Capital Markets and Securities Authority (CMSA), will remain open until June 8, 2016.
Ineke Bussemaker, the Managing Director of NMB, said, “NMB is principally funded by retail deposits, but there are other attractive funding options, with the NMB Retail Bond we are looking to raise TZS 20 billion (USD 9.1 million) with a green shoe option of TZS 5 billion (USD 2.3 million)” [1].
In 2015, NMB reported total assets of TSZ 4.6 trillion (USD 2.1 billion), return on assets (ROA) of 3.3 percent and customer deposits totaling TSZ 3.5 trillion (USD 1.62 billion). In 2014, NMB reported to the US-based nonprofit Microfinance Information Exchange (MIX) a return on equity (ROE) of 30.55 percent and a gross loan portfolio (GLP) of USD 1.17 billion.
By Jason Wei, Research Associate
Sources and Additional Resources
About National Microfinance Bank (NMB)
Established in 1997, National Microfinance Bank (NMB) is microfinance institution (MFI) that was established in Tanzania by the NMB Limited Incorporation Act. The bank initially provided payment services, savings accounts and very limited borrowing services, but since mid-2010 the bank has been expanding its lending operations. NMB operates 142 branches reportedly covering 80 percent of Tanzania’s districts. In 2015, NMB reported total assets of TSZ 4.6 trillion (USD 2.1 billion), return on assets (ROA) of 3.3 percent and customer deposits totaling to TSZ 3.5 trillion (USD 1.62 billion). In 2014, NMB reported to the US-based nonprofit Microfinance Information Exchange (MIX) a return on equity (ROE) of 30.55 percent and a gross loan portfolio (GLP) of USD 1.17 billion.
[1] NMB Opens a Bond Investment Opportunity for Everyone, http://www.nmbtz.com/media-news-centre/228-nmb-opens-a-bond-investment-opportunity-for-everyone
MicroCapital Universe Profile: National Microfinance Bank (NMB)
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Khan Bank Raises $10m in Bond Sale to Vision Microfinance Dual Return Fund to Support Women’s SMEs in Mongolia
- MICROCAPITAL BRIEF: First City Monument Bank of Nigeria Offers Asset Financing Starting at $600
- MICROCAPITAL BRIEF: Akbank Selling $300m in Bonds to DFC, AIIB, IFC – Half to Support Women-owned Businesses in Turkiye
- MICROCAPITAL BRIEF: Agents for Impact Disburses $8m from Invest in Visions (IIV) to Microfinance Institutions Digamber of India, Imon of Tajikistan
- MICROCAPITAL BRIEF: ADB Issues $8.5m Bond to Fund On-lending to Women, Agricultural MSMEs in Azerbaijan
