I&M Bank Tanzania has attracted more than eight times the amount initially offered to investors through its Hatua Bond, in a strong showing for the country’s debt market.
The bank received applications worth $61.24 million against an initial offer of $7.59 million, representing an oversubscription rate of 806.92%. It will accept $37.95 million under its approved bond programme and return the remaining funds to investors.
The results, disclosed in a public notice dated September 25, follow an offer period that ran from August 3 to September 4, 2026. The bond is the first tranche of I&M Bank’s five-year, multicurrency medium-term note programme, which has approval to raise to $37.95 million.
The bank said it would refund approximately $23.29 million in excess applications through direct bank transfers on September 28.
Investors offered a 13% annual return
The Hatua Bond carries a fixed annual interest rate of 13%, with payments made every three months. It is a senior unsecured bond, meaning it is not backed by specific collateral, and is scheduled to mature on September 21, 2031.
The bond was issued on September 21 and is expected to list on the Dar es Salaam Stock Exchange on October 15, allowing investors to trade the securities on the secondary market.
Under the allocation rules, investors received their full requested amount up to approximately $75,900. For applications above that threshold, the bank allocated 43.09% of the excess amount requested.
Funding businesses and digital expansion
I&M Bank plans to use the proceeds to support lending to corporate clients, retail customers and small and medium-sized enterprises.
The funds will also strengthen the bank’s medium- and long-term financing base and support investment in digital platforms and technology infrastructure.
The strong demand comes as Tanzania’s capital markets continue to provide businesses with alternatives to traditional bank lending and give investors access to a wider range of financial instruments.