The Makazi Bond issued by First Housing Finance (FHF) Tanzania and arranged by Stanbic Bank Tanzania has been oversubscribed by 661 per cent, signalling strong investor confidence in the country’s housing finance sector and growing trust in capital market investment products.
The bond attracted subscriptions worth TZS 33.08 billion, far exceeding its initial target of TZS 5.0 billion. This reflects strong investor appetite for innovative financial instruments and underscores the increasing role of capital markets in mobilising long-term development financing.
The overwhelming response marks one of the highest-performing Tanzanian Shilling-denominated bond issuances in recent history and highlights the growing maturity and depth of Tanzania’s capital markets.
FHF Tanzania Board Chairman, Mr Charles Mugila, described the achievement as a major milestone for both the institution and the country’s financial sector.
“This success reflects the high level of confidence investors have in our institution and the continued growth of Tanzania’s capital markets. As a Board, we are committed to ensuring that these funds are utilised prudently, transparently, and efficiently to achieve their intended purpose,” he said.
Following the strong demand, the company secured approval from the Capital Markets and Securities Authority (CMSA) to accept TZS 28.15 billion to support the expansion of housing mortgage lending across the country.
The listing of the Makazi Bond on the Dar es Salaam Stock Exchange (DSE) on 9 June 2026 increased the value of investments in corporate bonds by 1.63 per cent to TZS 2.06 trillion, up from TZS 2.03 trillion, further deepening Tanzania’s capital market.
The successful subscription is expected to strengthen FHF’s capacity to provide housing finance solutions to more Tanzanians, supporting national efforts to expand access to affordable housing while stimulating growth in the construction and real estate sectors.
CMSA Chief Executive Officer, CPA Nicodemus Mkama, said the strong performance of the bond demonstrates growing investor confidence in both First Housing Finance and Tanzania’s capital markets.
According to CMSA, retail investors accounted for 96.63 per cent of total subscriptions, while institutional investors contributed 3.37 per cent, highlighting increasing participation by ordinary Tanzanians in capital market investments.
CPA Mkama attributed the success to the enabling policy, legal, and operational environment established by the government to promote investment through capital markets.
“The achievement has been supported by various incentives, including the removal of withholding tax on returns from corporate bonds, which has made such investment products more attractive to investors,” he said.
He added that the issuance represents an important step in implementing the Financial Sector Development Master Plan which seeks to improve access to long-term financing for development projects in both the public and private sectors.
Stanbic Bank’s Head of Investment Banking, Ms Sarah Mkiramweni, said the oversubscription and listing of the Makazi Bond further reinforce Tanzania’s position as a leading capital market destination in East Africa.
She said Stanbic was proud to have acted as lead arranger for the transaction, working closely with other Advisors and regulators, including CMSA, Bank of Tanzania and the DSE, to bring the bond to market.
“Capital markets continue to be a critical source of fundraising for institutions, and Stanbic remains committed to supporting organisations seeking alternative financing through bond issuances and other market instruments,” Ms Mkiramweni said.
She noted that Tanzania benefits from a supportive regulatory framework and a diversified investor base comprising of institutional investors, retail investors, and international development finance institutions, factors that continue to drive successful issuances.
Commenting on the housing sector, Ms Mkiramweni said Stanbic would continue supporting the government’s housing agenda through mortgage financing and by helping housing finance institutions mobilise affordable capital for lending.
“Housing development is a key component of Tanzania’s Vision 2050 aspirations. As one of the country’s leading banks, we are committed to supporting long-term financing solutions that expand home ownership and contribute to economic growth,” she said.
Market analysts said the success of the Makazi Bond is likely to encourage more non-banking institutions to tap into the capital markets for funding, broadening financing options for businesses while deepening investor participation and market development.
