Tanzania 25-Year Bond Draws US$928 Million
Tanzania's new 12.75% 25-year bond drew bids of about US$928 million for a US$157 million offer; the government took US$209 million at 10.84%. The post Tanzania 25-Year Bond Draws US$928 Million appeared first on The Rio Times .
On Thursday, 15 October, Tanzania's central bank, the Bank of Tanzania, sold a 25-year bond with a fixed interest rate of 12.75% per year. The auction raised US$928 million, nearly six times the offered amount of TZS 414.19 billion (about US$157 million). The Bank of Tanzania accepted TZS 550.36 billion (about US$209 million) for the bond, which matures on 16 October 2051.
The weighted average yield to maturity for the bond was 10.84%, the lowest of four 25-year auctions held in 2026. The bond pays interest annually and is exempt from withholding tax. Bids were accepted from both competitive and non-competitive bidders, with the competitive round receiving 973 bids and the non-competitive round receiving 1,574 bids.
The bond's yield is about 6.5 points above Tanzania's inflation rate of 4.3% for September 2026. Compared to US Treasury bonds, the yield gap is 5.4 points, and the bond's coupon has fallen since February 2026. The Bank of Tanzania held three earlier 25-year auctions this year, with the August auction yielding 10.79%. Despite the modest dollar value of the deal, the Bank of Tanzania did not disclose who bought the bond or the purpose of the borrowing.
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