On 24 July 2026, the London Stock Exchange welcomed for the first time a bond denominated in Tanzanian shillings. Issued by the International Finance Corporation (IFC) for TZS 265.2 billion — equivalent to $100 million — this landmark transaction opens a new era for regional finance in East Africa.
An Innovative Structure Built to Serve SMEs
All proceeds flow to NMB Bank, Tanzania's second-largest lender, serving more than 10 million customers through over 250 branches nationwide. Twenty percent of the envelope — approximately TZS 52.5 billion — is earmarked for women-owned small and medium enterprises. The transaction is expected to support between 13,000 and 20,000 jobs, according to IFC projections.
The bond carries a 7.60% coupon, denominated in local shillings. This is the structure's decisive advantage: end-borrowers bear no foreign-exchange risk, insulating repayments from shilling fluctuations against the dollar.
A Record on International Capital Markets
This is the largest Tanzanian shilling-denominated bond ever placed on international capital markets, and the IFC's first-ever shilling issuance. NMB Bank had previously raised over TZS 400 billion through a social bond on the same London exchange in 2023.
Tanzania's Finance Minister Khamis Mussa Omar stated at the listing ceremony: «This transaction is a strong vote of confidence in Tanzania's economy and our reform agenda.»
Why It Matters
Enabling an African local currency to access London capital markets is a major symbolic and financial milestone. This transaction proves that East African currencies can serve as reference instruments on the world stage, reducing dollar dependence for investors and local SMEs alike. For the Indian Ocean, Tanzania's precedent paves the way for similar mechanisms in other regional economies — and signals that green, inclusive finance can be structured from Dar es-Salaam just as well as from Nairobi or Lagos.
Sources: TanzaniaInvest, AllAfrica, IFC (July 2026).