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CWEIC Strategic Partner, British International Investment (BII), the UK’s Development Finance Institution, has supported the landmark listing of the NMB sustainability bond which will boost the market for “green” investment vehicles in Africa and provide much needed liquidity in the continent’s growth markets.

BII was an anchor investor in the Tanzanian shilling tranche of the NMB Jamii Bond and last year invested $1.3 billion in total into African businesses. The DFI is committed to ensuring that at least 30 per cent of its total commitments are in climate finance. It will represent a new, vital and symbolically important route for institutional investors in the world’s largest capital markets to commit funds into African climate finance and development vehicles.

Christopher Chijiutomi, Managing Director and Head of Africa at BII, said: “The NMB listing represents a unique opportunity for UK and global investors to directly participate in Africa’s future. It will enhance vital inward investment into Africa and act as a proof point that sustainable development vehicles of this type can be attractive to the world’s largest institutional investors in London and elsewhere.”

The NMB listing is expected to contribute to Africa’s climate finance needs – estimated at $277 billion annually to implement its NDCs and meet 2030 climate goals. From 2019 to 2020, private sector financing represented only 14 per cent of all of Africa’s climate finance, according to a report by the Climate Policy Initiative.

The successful issuance of the Tanzanian shilling and U.S. dollar Jamii Bonds on the Dar es Salaam Stock Exchange in December last year highlighted the growing capacity of local investors to meet the rising demand for climate and sustainability financing. The bonds align with the Sustainability Bond Guidelines of the International Capital Markets Association, which prescribe transparent and accurate reporting to stakeholders.

Issued in both local currency and the US Dollar, the dual-tranche bond raised a total of TZS 400 billion ($159 million) from both local and international investors in its initial offering. BII, as an anchor investor, committed $15 million equivalent in Tanzanian shilling to the bond. It is the US dollar tranche that will be listed on the London Stock Market.

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