CRDB Bank introduced the Samia Infrastructure Bond in December last year, a major step towards providing sustainable funding for projects managed by the Tanzania Rural and Urban Roads Agency (TARURA).
The Samia Infrastructure bond is designed to accelerate the construction and rehabilitation of roads nationwide by reducing delays caused by budgetary constraints, ensuring TARURA’s projects are completed efficiently and on schedule.
The proceeds from the Samia Infrastructure bond have been instrumental in addressing liquidity challenges faced by local contractors working on TARURA projects. The bond, by easing financial bottlenecks, has facilitated smoother project execution while empowering local businesses to actively contribute to Tanzania’s national development.
Why Choose the Samia Infrastructure Bond?
CRDB Bank is a partner in national development, and the bond not only strengthens infrastructure but also provides an attractive investment opportunity. With innovative tools like the SimBanking app, investing has never been more accessible.
The Samia Infrastructure Bond, valued at TZS 150 billion, further offers a fixed annual interest rate of 12% and features tax-exempt quarterly coupon payments in February, May, August, and November. Set to mature in February 2030, the bond will be officially listed on February 10, 2025.
With a minimum investment of TZS 500,000, it is designed to attract a broad range of participants, including individuals, cooperatives, pension funds, and institutional investors.
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Here’s how you can invest with the Samia Infrastructure Bond:
- Download SimBanking: Available on Google Play or the Apple App Store.
- Create an account or log in.
- Navigate to Investments: Under the “Services” tab, select “Investments.”
- Choose the Samia Infrastructure Bond: Input the investment amount (minimum 500,000 TZS).
- Confirm your details: Review and complete your investment.
- Receive confirmation: You’ll get a notification upon successful investment.
What to Expect from Your Investment
For example, if you invest 500,000 TZS in the Samia Infrastructure Bond, which offers an annual interest rate of 12% tax-free, here’s how your investment can grow:
- In one year, your investment would yield 60,000 TZS in interest.
- Since the bond is tax-free, you will receive the entire amount without deductions.
- Over a period of five years, the total returns on your investment would amount to 300,000 TZS, giving you a total of 800,000 TZS at maturity.
Key Dates to Remember
The Samia Infrastructure bond is available in the primary market from November 29, 2024, to January 17, 2025. Afterward, it will be listed on the Dar es Salaam Stock Exchange (DSE).