Boost for SME financing as EFTA bond raises Sh33.04 billion, beats target by 220pc

Josephine Christopher is a senior business journalist for The Citizen and Mwananchi newspapers

Mwananchi Communications Limitted

Dar es Salaam. Equity for Tanzania Limited (EFTA) has recorded a strong uptake of its corporate bond, raising Sh33.04 billion—more than double its initial target of Sh15 billion, representing a subscription rate of 220.24 percent.

The bond, which opened on February 10, 2026, and closed on March 16, 2026, attracted robust interest from both retail and institutional investors, reflecting a growing appetite for fixed-income instruments in the domestic capital market.

Following the oversubscription, EFTA obtained regulatory approval to accept the full amount raised and allocate securities proportionately, with all valid applications receiving 100 per cent allocation.

The five-year instrument carries a fixed annual coupon of 14 per cent, payable semi-annually, positioning it among the more attractive medium-term corporate debt offerings in the market.

According to a statement issued by EFTA, proceeds from the bond will be directed towards financing productive assets for small and medium-sized enterprises (SMEs), with a focus on agriculture, manufacturing and trade—sectors considered critical to job creation and industrial expansion.

Speaking on the results, EFTA Chief Executive Officer, Mr Nicomed Bohay, said the outcome reflects strong investor confidence in the institution and its investment approach.

“These results clearly demonstrate investor confidence in our strategy of investing in the real economy. We will continue to channel these resources into productive sectors to drive business growth, job creation and overall economic development,” he said.

According to the issuance timetable, the bond was officially issued on April 13, 2026, and is set to mature on April 12, 2031, with interest payments scheduled for April 12 and October 12 each year.

The bond is also expected to be listed on the Dar es Salaam Stock Exchange (DSE) on April 22, 2026.

The strong performance of the EFTA bond signals growing investor appetite for capital market instruments that support productive sectors of the economy, highlighting their increasing role in financing economic growth in Tanzania.