CRDB Bank targets at least Sh30 billion and $5 million from Sharia-compliant bond
Retired President Jakaya Kikwete launches sales of the CRDB Al Barakah Sukuk issued by CRDB Bank in DAr es Salaam. Looking on from left are CRDB Bank board chairperson Neema Mori, CRDB Bank chief executive Abdulmajid Nsekela, Sharia Advisory Board chair Abdul Van Mohammed, Chief Sheikh Abubakar Zubeir bin Ally and Evangelical Lutheran Church in Tanzania (ELCT) head Alex Malasusa. PHOTO | CORRESPONDENT
What you need to know:
- It also carries a green-shoe option that could push the totals to Sh40 billion and $7 million, respectively, the bank said in a statement on yesterday.
Dar es Salaam. CRDB Bank has launched a Sharia-compliant bond aimed at boosting inclusive financial access and accelerating investment in ethical and socially responsible enterprises in Tanzania and the wider East African region.
Known as the CRDB Al Barakah Sukuk, the instrument strictly adheres to Islamic finance principles and seeks to raise Sh30 billion and $5 million.
It also carries a green-shoe option that could push the totals to Sh40 billion and $7 million, respectively, the bank said in a statement on yesterday.
The Sukuk was officially launched at the weekend at an event graced by Retired President Jakaya Kikwete, who lauded the initiative as a milestone in democratising Tanzania’s capital markets.
“This bond is a revolutionary step forward in opening up capital markets to a segment of our population that has long been excluded due to religious beliefs. It is a win for financial inclusion and for ethical development,” Mr Kikwete said.
The CRDB Al Barakah Sukuk is the third tranche under the bank’s five-year $300 million Medium-Term Note Programme approved by the Capital Markets and Securities Authority (CMSA). It follows the bank’s Kijani Bond and Samia Infrastructure Bond, both of which were oversubscribed.
CRDB Bank Group CEO and managing director Abdulmajid Nsekela said the Sukuk underscores the lender’s belief that finance must be inclusive and aligned with people’s values.
“Through this Sukuk, we are opening doors for more people to participate in capital markets without compromising their faith. It will also unlock capital for ethical, sustainable projects that benefit communities,” he said.
Proceeds will fund ventures in sectors such as healthcare, halal agribusiness, education and environmentally friendly manufacturing.
The bond offers a return of 12 percent per annum for local currency investors and six percent for US dollar investors, with quarterly profit distributions.
The minimum investment is Sh500,000 or $1,000, making it accessible to retail investors, the diaspora and institutions. Subscriptions close on September 12, 2025.
British International Investment (BII) is the anchor investor. British High Commissioner to Tanzania Marianne Young said the financing strengthens UK–Tanzania economic ties, adding that the UK aims to mobilise £1 billion in UK-backed investment in Tanzania by 2030.
CRDB Bank board chairperson Neema Mori and Sharia Advisory Board chair Abdul Van Mohammed said the bond bridges faith and finance, offering a legitimate path for those previously excluded from conventional investment products.
BII investment director Jumai Mohammed said: “This Sukuk exemplifies how capital markets can serve a greater purpose, driving inclusive, values-based economic growth.”
CMSA CEO Nicodemus Mkama and Dar es Salaam Stock Exchange CEO Peter Nalitolela described the launch and listing as a major step in diversifying Tanzania’s capital markets.
