Tanzania Mortgage Company Limited (TMRC) has listed a Tsh 120 billion bond at the Dar es Salaam Stock exchange (DSE), giving investments another avenue.
The bond will be sold in several trenches, covering a total of five years. The first trench, which was officially listed recently was sold between May 28 and june 8 and registered a subscription of 104 per cent.
"The first trench was sold between May 28 - June 8 2018. Following the awareness from the people, TMRC collected Tsh 12.4 billion, which was 4.3 per cent more than the expected amount of Tsh 12 billion," the Ag. Chief Executive Officer for Capital Markets and Securities Authority (CMSA), Nicodemas Mkama, stated.
According to Mkama, said that the amount to be collected due to this corporate bond sell will be used to provide cheap loans to people and financing other development projects so as to improve the housing industry in the country.
The newly elected TMRC Board of Directors Chairman, Theobald Sabi, said that in seven years, the mortgage firm has managed to increase its loan tenure to an average of 15 to 25 years from 5 - 10 years in 2010.
Sabi said "The number of banks offering mortgage loans has increased to 31 as of March from three in 2010 and mortgage interest has decreased to 16 and 19 per cent from 22 and 24 per cent respectively.
For his part, the Chief Executive Officer for TMRC, Oscar Philemon Mgaya, said they added merely 1.0 per cent on top of the fund sourced through the Tsh12.5 billion bond interest.
"After the Bank of Tanzania lowered treasury bond interest rates, the cost of other instruments may also follow suit and decline," Mgaya said.
The Deputy Minister for Finance and planning, Dr. Ashatu Kijaji, who was the chief guest at the event, hailed TMRC for implementing its role of improving the housing sector in Tanzania by providing loans and stock markets.
Hon. Kijaji, called on the firm to lower interest rates on mortgage loans after sourcing fund at affordable rate.
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