EFTA bond over subscribed strong confidence
DAR ES SALAAM: THE oversubscription of the Equity for Tanzania (EFTA) corporate bond has been hailed as a major boost to Tanzania’s capital markets, reflecting strong investor confidence and expanding financing opportunities for productive sectors. Speaking during the bond’s listing at the Dar es Salaam Stock Exchange yesterday, CMSA Chief Executive Officer Mr Nicodemus Mkama … The post EFTA bond over subscribed strong confidence first appeared on Daily News. The post EFTA bond over subscribed strong confidence appeared first on Daily News.
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DAR ES SALAAM: THE oversubscription of the Equity for Tanzania (EFTA) corporate bond has been hailed as a major boost to Tanzania’s capital markets, reflecting strong investor confidence and expanding financing opportunities for productive sectors.
Speaking during the bond’s listing at the Dar es Salaam Stock Exchange yesterday, CMSA Chief Executive Officer Mr Nicodemus Mkama said the achievement reflects growing investor confidence in EFTA and Tanzania’s capital markets.
The bond raised approximately 33.04bn/-, more than double the targeted 15bn/-, marking one of the strongest responses from investors in recent years.
Mr Mkama said the oversubscription was a clear indication that government policies aimed at promoting inclusive economic participation and strengthening the financial sector are bearing fruit.
He noted that reforms introduced by the government and regulators have created a conducive environment that encourages wider participation in capital markets.
He cited the reduction of the minimum investment threshold from 1m/- to 500,000/- as a key measure that has widened access for Tanzanians, especially youths and women.
Mr Mkama said the bond’s success reflects investor confidence in both EFTA and Tanzania’s capital markets, adding that ICT use and financial literacy campaigns helped increase public awareness of investment opportunities.
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Mr Mkama said the funds raised through the bond will significantly strengthen EFTA’s financial capacity and liquidity, enabling the institution to expand financing for entrepreneurs and productive sectors.
The financing will support acquisition of tractors, agricultural machinery, processing equipment, construction machinery, mining equipment, cargo trucks and tourism vehicles.
He noted that increased access to such equipment will boost productivity among small and medium-sized enterprises (SMEs), particularly those that struggle to secure conventional financing from banks.
EFTA Managing Director Mr Nicomed Bohay said the strong investor response reflects confidence in the institution’s model and Tanzania’s capital markets, noting that local markets can effectively finance productive sectors of the economy.
On behalf of the EFTA Board Chairperson, board director Professor Andrew Temu said the bond’s oversubscription sends a positive signal about the strength and reliability of Tanzania’s financial regulatory system.
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