Dar es Salaam—Dentons EALC East African Law Chambers advised CRDB Bank PLC, Tanzania’s leading financial institution, on its most recent bond issue dubbed “Samia Infrastructure Bond” which is the first bond of its nature to be issued and listed on the Dar es Salaam Stock Exchange (DSE).  In an unprecedented move, CRDB successfully raised TZS 323.09 billion through the Samia Infrastructure Bond, achieving an historical oversubscription rate of 215.4% with 99% of the local participation. The five-year bond, with a coupon rate of 12% per annum payable quarterly, is directed towards the financing of critical infrastructure projects, including the development of rural and urban roads in collaboration with the Tanzania Rural and Urban Roads Agency (TARURA).

The overwhelming investor response reflects strong market confidence in CRDB Bank’s vision and Tanzania’s growth potential. 

Kijani Green Bond: pioneering sustainable finance in Tanzania

The Samia Infrastructure Bond is part of a US$300 million multi-currency medium term note programme which was preceded by Tanzania’s first-ever green bond, the Kijani Bond, issued by the same bank raising an amount of TZS 171.82 billion, which also significantly exceeded its initial target of TZS 40 billion. The Kijani Bond, which attracted significant investor interest, will fund renewable energy, water supply and climate-resilient infrastructure projects, aligning with Tanzania’s commitment to sustainable development.

The Kijani Bond, with an interest rate of 10.25% per annum paid semi-annually, represents a major step forward in green financing for the region. 

As legal counsel to CRDB in both the Samia Infrastructure Bond and the Kijani Bond, Dentons EALC East African Law Chambers provided strategic legal guidance to ensure compliance with both local and international green bond standards, reinforcing Tanzania’s position in the global sustainability landscape.

A testament to collaboration and expertise

These transactions highlight Dentons EALC East African Law Chambers’ deep expertise in capital markets, and banking and finance law, as well as our ability to navigate complex regulatory environments. Our team worked closely with CRDB Bank PLC, regulators and other stakeholders to deliver seamless execution and impactful outcomes.

Key stakeholders

• Issuer: CRDB Bank PLC
• Lead transaction advisers: iTrust Finance Limited and Stanbic Bank Tanzania
• Regulators: Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE)

Dentons EALC East African Law Chambers role

Dentons acted as legal counsel to CRDB Bank, providing end-to-end support on both transactions. Our team combined local market knowledge with global insights to deliver tailored solutions that met the bank’s strategic objectives. 

Stella Ndikimi, partner who led on the transaction, said: “We are proud to have supported CRDB Bank on these transformative transactions. The Samia and Kijani Bonds not only demonstrate the potential of Tanzania’s capital markets but also highlight the growing importance of sustainable finance in the region.”

Looking ahead

These landmark issuances mark a new chapter for Tanzania’s capital markets, showcasing the potential for innovative financing solutions to drive economic growth and sustainability. At Dentons EALC East African Law Chambers, we remain committed to supporting our clients in achieving their ambitions and shaping the future of the region.

Dentons EALC East African Law Chambers acted as lead legal adviser, led by partner Stella Ndikimi and senior associate Emma Kimario.

About Dentons

Redefining possibilities. Together, everywhere. For more information visit dentons.com