The 5
year corporate bond issuance program is worth TZS 120 billion
TMRC
will issue its first tranche of TZS 12 billion immediately in June 2018
Tanzania Mortgage Refinance
Company Limited (TMRC) launched its 5 year corporate bond issuance program to
the public today. The launch took place
today at the Serena Hotel and it was witnessed by potential investors,
regulators and other financial sector stakeholders. TMRC bond issuance launch took place after
TMRC received all the necessary approvals for the 5 years corporate bond
issuance program worth TZS 120 billion. The program received the green light from both the Capital Markets and Securities Authority (CMSA) as well as Dar-es-salaam Stock Exchange (DSE). TMRC corporate bonds will be listed on the DSE.The CMSA and DSE approval also included the go ahead for TMRC to issue its first Tranche of the corporate bond which will be TZS 12 billion. TMRC CEO Oscar Mgaya said “we have received all the necessary approvals and we intent to go to the market with our first tranche immediately”.
TMRC is a specialized private sector financial
Institution that provides long-term funding to financial institutions for the
purposes of mortgage lending. It has the objective of supporting financial
institutions to do mortgage lending by refinancing Primary Mortgage Lenders'
(PMLs') mortgage portfolios. This type of lending is also known as wholesale or
secondary market lending. TMRC is neither taking deposits nor lending directly
to individuals. It refinances mortgage loan portfolios rather than individuals
mortgage loans and caters to banks rather than individual borrowers. TMRC is raising the funds to support its
operations of mortgage refinancing. “It
was envisioned from its inception that TMRC will source funds from the capital
markets through bond issuance among other sources” said Mgaya. “It was just a matter of time and now is the
right time given the declining interest rates environment” added Mgaya.
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