Africa-Press – Tanzania. Tanzania Mortgage Refinance Company Limited (TMRC) medium term bond has been oversubscribed by 27 per cent Initial Public Offering (IPO) thanks to the firm’s trust among investors.
TMRC wanted to collect 7.0bn/- for financing house purchasing but ended collecting 8.8bn/- in one month IPO between April and May.
Ministry of Finance and Planning Permanent Secretary Dr Charles Mwamaja said yesterday during the listing of the bond at Dar es Salaam Stock Exchange (DSE) that was part of the government’s emphasis on long-term finance for provision of mortgage loans.
“This shows that the company has earned more trust among investors and this money will go to enable the provision of more affordable mortgage loans to Tanzanians,” Dr Mwamaja said.
Tranche three was a continuation of the company’s target to raise 120bn/- in the next five years for issuing loans to banks so that they could provide affordable mortgage loans to Tanzanians thus boosting the mortgage sector.
Currently, a total of 32 banks provide mortgage loans, up from only three lenders a decade ago.
TMRC Chief Executive Officer Mr Oscar Mgaya, said the third tranche managed to attract International Finance Corporation (IFC)—a sister organisation of the World Bank and member of the World Bank Group.
“In the previous tranches we only had local investors, but after increasing trust among investors we now have attracted international investors,” Mr Mgaya said.
Since it started, the TMRC has issued housing loans amounting to 150bn/- to banks.
The IFC Resident Representative for Tanzania, Mr Frank Ajilore, said TMRC’s medium-term note program will contribute to the development of the debt capital markets in the country and providing alternative investment instruments to institutional and private investors.
“Increasing access to affordable housing finance, with longer repayment schedules, will make home ownership more attainable for Tanzania’s emerging middle class,” Mr Frank Ajilore said.
IFC invested some 2.8bn/- in the oversubscribed bond offer.
IFC has been a shareholder of TMRC since 2019. IFC’s investment in the company is supported by the International Development Association’s (IDA) private sector window local currency facility and blended finance facility.
The Capital Markets and Securities Authority (CMSA), Chief Executive Officer, Mr Nicodemus Mkama, said TMRC managed to surpass the target due to increase public awareness on investing in the capital market.
