Re-Opening of 25-Year Treasury Bond(16 March 2022)

11th March, 2022

Bonds, Government Securities

ISIN: TZ1996104018

1.       Issuer

United republic of Tanzania

2.       Amount

Competitive          Non – Competitive

TZS 113.0 Billion     TZS 0.45 Billion

3.       Auction Date

 16 March 2022

4.       Procedure for Bidding

Bids will be submitted online through Central Depository Participants and the process will be closed at 11:00 A.M on the auction date.

5.       Price per TZS 100

To be quoted at a discount to four (4) decimal places.

6.       Minimum bid size

TZS 1,000,000 in multiples of TZS 100,000

7.       Auction Results

Auction results shall be made available on the Bank’s Website and at the Depository Participant’s offices immediately after the auction.

8.       Settlement Date

17 March 2022 (T+1)

9.       Coupon

Fixed at 15.95% p.a.

10.   Redemption Date

05 Aug 2046

11.   Tax

Interest Income Is Exempted from withholding Tax.

12.   Currency

13.  Day count convention

14.  Trading

 

 15. Interest Payment Date

Tanzania Shillings (TZS)

Actual/365

Secondary trading in multiples of TZS 100,000 to commence on Friday 18 March 2022

 

Semi-annually from issue date

First Interest Date: 05 August

Second Interest Date: 03 February

 16. Defaulters

Successful bidders who fail to honor their obligations on time will be disqualified from participating in the subsequent auctions for a minimum period of one (1) month

 17. Key Note

The bond price should include the Accrued Interest of TZS1.8353 per TZS 100.

For example: Based on the yield to Maturity (YTM) of 15.8543%, Clean Price is TZS 100.5891, Dirty Price is TZS 102.4244 (i.e Clean Price (TZS 100.5891) plus Accrued Interest (TZS 1.8353))

Treasury Bonds Issuance Calendar For The First Half Of The Financial Year 2024/25