NMB Bank Shareholders Approve Record TZS 181 Billion Dividend

NMB Bank Tanzania shareholders have approved a cash dividend of TZS 361 per share, totaling a dividend payout of TZS 181 billion for the financial year ending on December 31, 2023. The record-breaking dividend was approved at the bank’s 24th Annual General Meeting held on May 6th, 2024.

This impressive figure represents a significant 26% increase from the previous year’s TZS 286 per share and reflects the bank’s strong financial performance and commitment to rewarding its investors. It is also one-third of net profit in line with NMB Bank dividend policy.

This sum is the highest ever distributed to nmb bank shareholders, representing the sixth consecutive year of increased dividend payouts by the company.

This achievement follows nmb bank tanzania making history last month by listing its inaugural three-year US$73 million Sustainability Bond on the prestigious International Securities Market (ISM) and Sustainable Bond Market (SBM) Platform at the London Stock Exchange (LSE). Aptly named the “Jamii Bond,” this pioneering instrument dedicates its proceeds to critical climate-positive infrastructure projects, aligning with the growing global focus on sustainable development.

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Jamii Bond garnered significant international backing, with British International Investment (BII) serving as an anchor investor in the Tanzanian shilling tranche. Additionally, FSD Africa provided technical assistance for NMB Bank’s portfolio review.

NMB had previously launched the Jasiri Gender Bond, a groundbreaking instrument listed on the Luxembourg Stock Exchange last year that focused on supporting gender-based initiatives.

Ms. Ruth Zaipuna, Chief Executive of NMB, highlighted the significance of these ventures, stating, “This extraordinary success highlights the strong confidence Tanzanian and global investors have in NMB Bank’s soundness and commitment to sustainability across operations, business, community, and environment. It reaffirms our creditworthiness and reflects the desire of investors, both local and international, to seize the safe and impactful investment opportunities within Tanzania’s robust investment climate.”

She added that apart from giving the two bonds better visibility internationally, the offshore ventures also enable the bank to tap funds from a deeper pool of capital and a wider investor base. This expanded base translates to increased resources for financing impactful projects that improve lives, transform communities, and shape a brighter future for all.

The Jamii Bond represents the first tranche of NMB’s current 10-year Sh1 trillion (circa $385 million) multi-currency Medium-Term Note (MTN) Programme.

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The proceeds generated from NMB’s Sh1 trillion MTN Programme will be strategically allocated across various impactful sectors. This includes supporting the transition to clean energy sources through renewable energy initiatives, promoting responsible water use and efficient wastewater management systems, and encouraging the construction and renovation of energy-efficient buildings.

Additionally, the program will address food security by investing in projects that enhance agricultural productivity and ensure stable food supplies. Finally, the MTN Programme will contribute to economic growth and job creation by supporting initiatives that stimulate these areas.

For more information about nmb bank tanzania, please visit NMB Bank Towers in Dar es Salaam, Tanzania, or contact them through the nmb bank tanzania contact at +255 22 216 1000. You can also manage your finances on the go with the nmb mkononi mobile app.