Re-Opening of Treasury Bond Auction 20-Year Fixed Rate

11th February, 2022

Bonds, Government Securities

ISIN: TZ1996103820

1.       Issuer

United republic of Tanzania

2.       Amount

Competitive          Non – Competitive

TZS 139.0 Billion     TZS 0.50 Billion

3.       Auction Date

 16 February 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 February 2022 (T+1)

9.       Coupon

Fixed at 15.49% p.a.

10.   Redemption Date

18 December 2040

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 February 2022

 

Semi-annually from issue date

First Interest Date: 17 June

Second Interest Date: 18 December

 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 TZS 25887 per TZS 100.

For example: Based on the yield to Maturity (YTM) of 15.0143%, Clean Price is TZS 102.9614, Dirty Price is TZS 105.5501 (i.e Clean Price (TZS 102.9614) plus Accrued Interest (TZS 2.5887))

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