Tanzania’s Inaugural Sukuk Issuance Receives High Demand; Oversubscribed by 36%

Tanzania has witnessed the issuance of its inaugural Sukuk offering, which received high demand from investors, according to local media reports. The Sukuk amounting to TZS 2 billion was offered by Tanzania-based Islamic finance company Imaan Finance by way of private placement. The Sukuk was oversubscribed by 36% and raised TZS 2.72 billion in bids. With a TZS 1 billion greenshoe option available, Imaan Finance will be exercising the option to meet the oversubscribed amount of TZS 720 million.

Why it Matters?

Proceeds of the Sukuk will be used by Imaan Finance to grow its loan portfolio under Shariah principles. According to Ivan Tarimo, Chief Executive Officer at FIMCO Limited, which is an authorised financial services provider licensed by Tanzania...