NMB Bank Brings 1st Sub-Saharan Gender Bond to LGX

As part of its International Women’s Day celebrations, the Luxembourg Stock Exchange (LuxSE) recently welcomed the first gender bond from Sub-Saharan Africa issued by NMB Bank Plc in Tanzania. 

In a special two-part "Ring the Bell" ceremony which saw the launch of the Luxembourg Women in Finance Charter, LuxSE was also joined by representatives of NMB Bank, a commercial bank headquartered in Dar es Salaam, Tanzania, to celebrate the display of the bank’s TZS 74 billion (equivalent to $32 million) gender bond on the Luxembourg Green Exchange (LGX).

LuxSE highlighted that, 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 issuance from NMB Bank was 197% over-subscribed which, according to LuxSE, shows great appetite for gender bonds and sets a new benchmark for the continent in developing financial instruments specifically targeting women's empowerment.

Luxembourg's Minister of Finance, Yuriko Backes, commented: "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 3,000 women in Tanzania with access to the financing necessary to start or grow their own business. By dedicating 100% of the bond’s proceeds to such projects, NMB's gender bond is expected to allow many women in Tanzania to enjoy financial independence and build a future for themselves, their families and communities.

"It is an honour to welcome this inaugural gender bond from NMB Bank to LuxSE. This bond is a perfect illustration of the importance of women's economic empowerment and the positive impact of gender finance. At LuxSE, we see it as our duty to advance the gender agenda and give issuers of gender bonds a pathway to international capital markets while also providing the visibility needed for investors to access these gender-focused investment opportunities," said Julie Becker, CEO of LuxSE.

NMB Bank CEO Ruth Zaipuna added: "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." She continued: "Going forward, we remain committed to being a beacon of innovation, excellence and sustainability leadership within and outside Tanzania."

With the display of NMB's gender bond, LGX now counts almost 50 social, sustainability and sustainability-linked gender-focused bonds, which contribute to empowering women and girls around the world.