CRDB’s Al Barakah Sukuk oversubscribed as investor appetite for Islamic finance grows

In the foreign currency tranche, the bank targeted only $5 million but attracted $32.3 million, representing a 646 percent oversubscription.

Gracing the listing ceremony, Deputy Permanent Secretary in the Ministry of Finance, Dr Elijah Mwandumbya, described the outcome as a national milestone.

“The extraordinary performance of this Sukuk is a clear testament to the maturity of Tanzania’s capital markets and the strong appetite for innovative investment products,” he said.

He added that the Government remains committed to strengthening the regulatory environment, including finalising dedicated Islamic finance legislation to enhance transparency, deepen investor protection, and position Tanzania as a competitive hub for Shariah-compliant finance in Africa.

CRDB Bank Group CEO and Managing Director, Abdulmajid Mussa Nsekela, said the results surpassed all expectations, revealing that the Sukuk attracted more than 1,000 investors.

Participants included individuals, institutions, religious groups, and international investors from over seven countries.

“What we have witnessed is unprecedented. Raising Sh125.4 billion and $32.3 million is not only a success for CRDB Bank, but also a vote of confidence for Tanzania,” said Mr Nsekela.

He added that over Sh70 billion was invested by individual Tanzanians, signalling rising financial literacy and trust in domestic markets, while more than Sh50 billion came from international investors, underscoring Tanzania’s growing profile in global Islamic finance.

He further noted that the Sukuk aligns with CRDB’s long-term strategy to mobilise $300 million within five years through Shariah-compliant instruments to support development projects, expand SME financing, and boost financial inclusion.

Representing the Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Exaud Julius said the Sukuk’s performance reflects strong policy measures aimed at strengthening the investment environment.

“These results clearly demonstrate a growing public confidence in investing in corporate bonds,” he said.

He added that the listing has pushed DSE’s total market capitalisation to Sh13.7 trillion, up from Sh13.5 trillion, alongside an increase in both domestic and international investors.

DSE CEO, Peter Nalitolela, commended the successful listing, noting that the oversubscription demonstrates investor confidence in Tanzania’s regulatory framework.

He said the listing will boost liquidity, broaden market participation, and elevate Tanzania’s standing relative to Islamic finance hubs such as Kuala Lumpur, Dubai, Riyadh, and Manama.

Chairperson of the CRDB Bank Board of Directors, Professor Neema Mori, praised the achievement, saying the strong investor turnout reflects the Board’s commitment to innovation, good governance, and ethical finance.

She cited the confidence shown by partners such as British International Investment (BII) as further affirmation of the Sukuk’s credibility.

The Chairperson of the Al Barakah Shariah Advisory Board, Abdul Mohammed, described the Sukuk as transformative for Tanzania.

He welcomed the Government’s ongoing efforts to establish a national Islamic finance law, noting that such a framework would allow the country to tap into highly liquid markets in the Gulf Cooperation Council (GCC).

The listing ceremony featured a symbolic bell-ringing to officially welcome the Sukuk into the secondary market, offering investors a regulated platform for trading, transparency, and long-term ethical investment opportunities.

Since its establishment in 2021, CRDB Al Barakah has expanded rapidly, now serving over 400,000 customers, holding more than Sh350 billion in deposits, and issuing over Sh287 billion in Shariah-compliant financing.

The success of the Sukuk marks a significant step forward for Islamic finance in Tanzania and reinforces the country’s position as an emerging destination for regional and international investment.