CRDB Bank introduced the Samia Infrastructure Bond in December last year, marking a significant milestone in funding sustainable infrastructure projects in Tanzania. The bond is designed to support the Tanzania Rural and Urban Roads Agency (TARURA) in accelerating road construction and rehabilitation projects across the country.
The proceeds from the Samia Infrastructure Bond have been instrumental in resolving liquidity challenges faced by local contractors working on TARURA’s projects. By easing financial bottlenecks, the bond facilitates smoother project execution, contributing to Tanzania’s national development while empowering local businesses.
Why Choose the Samia Infrastructure Bond?
The Samia Infrastructure Bond offers an excellent investment opportunity while supporting national infrastructure development. The bond, valued at TZS 150 billion, offers a fixed annual interest rate of 12% and features tax-exempt quarterly coupon payments in February, May, August, and November.
The bond matures in February 2030 and will be listed on the Dar es Salaam Stock Exchange (DSE) from February 10, 2025.
With a minimum investment of TZS 500,000, the bond is accessible to a wide range of investors, including individuals, cooperatives, pension funds, and institutional investors.
How to Invest in the Samia Infrastructure Bond
Investing in the Samia Infrastructure Bond is simple and accessible through SimBanking, CRDB Bank’s digital platform. Here’s how you can get started:
- Download SimBanking: Available on Google Play or the Apple App Store.
- Create an Account or Log In: Open the app and log into your account or create a new one.
- Navigate to Investments: Under the “Services” tab, select “Investments”.
- Choose the Samia Infrastructure Bond: Input the amount you wish to invest (minimum 500,000 TZS).
- Confirm Your Details: Review and confirm your investment details.
- Receive Confirmation: You’ll receive a notification once your investment is successfully processed.
What to Expect from Your Investment
Here’s an example of how your investment can grow with the Samia Infrastructure Bond, which offers a 12% annual interest rate, tax-free:
- Investment Amount: 500,000 TZS
- Annual Interest: 60,000 TZS (12% of 500,000 TZS)
- Since the bond is tax-free, you’ll receive the entire interest amount.
- 5-Year Returns: Over five years, the total returns would be 300,000 TZS, bringing your total investment value to 800,000 TZS at maturity.
Key Dates to Remember
- Primary Market: The Samia Infrastructure Bond will be available for purchase from November 29, 2024, to January 17, 2025.
- Listing: After the primary market, it will be listed on the Dar es Salaam Stock Exchange (DSE) starting February 10, 2025.
Conclusion
The Samia Infrastructure Bond offers an attractive investment opportunity for individuals and institutions looking to contribute to Tanzania’s infrastructure development while earning tax-free returns. With a 12% annual interest rate and the flexibility to invest through SimBanking, this bond is an ideal choice for those seeking stable, long-term returns. Start investing today and make a meaningful contribution to Tanzania’s future growth!
