NMB Bank brings first Sub-Saharan gender bond to Luxembourg
On 8 March 2023, history was made when NMB Bank’s Jasiri, gender bond, became the first sub-Saharan African bond to list on the Luxembourg Green Exchange (LGE), during the launch of the Luxembourg Women in Finance Charter.
With the stated objective of bringing much-needed financing to women-owned micro, small and medium-sized enterprises in Tanzania, this is the first-ever gender bond issued in the East Africa region. The trailblazing issuance from NMB Bank was 197% over-subscribed which shows great appetite for gender bonds and sets a new benchmark for the continent in developing financial instruments specifically targeting women’s empowerment.
Luxembourg Minister of Finance Yuriko Backes, who officially launched the Luxembourg Women in Finance Charter during the International Women’s Day event, said “ This listing marks an important milestone for global efforts to promote gender finance and underlines the Luxembourg Stock Exchange’s pioneering role in helping to drive new and emerging sustainable financial products. By directing capital towards initiatives that empower women and advance their participation in the economy, the financial sector can thus support the unlocking of new opportunities for growth and innovation to help build a more equitable and sustainable future for all.”
The proceeds of this social bond are expected to provide up to 3000 women in Tanzania with access to the financing necessary to start or grow their own businesses. By dedicating 100% of the bond’s proceeds to such projects, NMB’s gender bond will allow many women in Tanzania to enjoy financial independence and build a future for themselves, their families, and communities.
NMB Bank CEO Ruth Zaipuna said “Driving inclusive growth through gender equality and economic empowerment of women, is one of the core tenets, guiding NMB Bank’s purpose and vision. The listing of the Jasiri bond on the Luxembourg Stock Exchange underscores our commitment towards gender empowerment, and marks yet another history for the bank, for being the first Sub-Saharan bank to bring a gender-based bond to an exchange with a fast-growing reputation as a hub for sustainable finance. We are glad to contribute to the exchange’s role.” “Going forward, we remain committed to being a beacon of innovation, excellence and sustainability leadership within and outside Tanzania,” she concluded.
For more information visit www.nmbbank.co.tz