The National Microfinance Bank (NMB), an institution backed by the government of Tanzania, recently announced that it has listed TZS 41.4 billion (USD 18.8 million) in three-year retail bonds on the Dar es Salaam Stock Exchange (DSE), the listing surpassed its initial retail bond target by 107 percent. The bank had intended to raise TZS 20 billion (USD 9.1 million) .
Ineke Bussemaker, the Managing Director of NMB, said: “The proceeds of the bond issue will be used for on-lending to the bank’s customers who include individuals, micro-, small and medium-sized enterprises as well as large corporate and government institutions”.
In 2015, NMB reported total assets of TSZ 4.6 trillion (USD 2.1 billion), return on assets (ROA) of 3.3 percent and customer deposits totaling TSZ 3.5 trillion (USD 1.62 billion). In 2014, NMB reported to the US-based nonprofit Microfinance Information Exchange (MIX) a return on equity (ROE) of 30.55 percent and a gross loan portfolio (GLP) of USD 1.17 billion.
By Kevin van den Brink, Research Associate
About National Microfinance Bank (NMB)
Established in 1997, National Microfinance Bank (NMB) is microfinance institution (MFI) that was established in Tanzania by the NMB Limited Incorporation Act. The bank initially provided payment services, savings accounts and very limited borrowing services, but since mid-2010 the bank has been expanding its lending operations. NMB operates 142 branches reportedly covering 80 percent of Tanzania’s districts. In 2015, NMB reported total assets of TSZ 4.6 trillion (USD 2.1 billion), customer deposits totaling to TSZ 3.5 trillion (USD 1.62 billion) and return on assets (ROA) of 3.3 percent. In 2014, NMB reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio (GLP) of USD 1.17 billion and a return on equity (ROE) of 30.55 percent.
Sources and Additional Resources
 MicroCapital, News, “Tanzanias National Microfinance Bank NMB Selling 9m in Bonds for on Lending”
 East African Business Week, News, “NMB Bank Lists Over $18m on Dar es Salaam Bourse”
MicroCapital Universe Profile: National Microfinance Bank (NMB)
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
- MICROCAPITAL BRIEF: Tanzania’s National Microfinance Bank (NMB) Launches AgriBiashara to Bolster Agricultural Value Chains; Wajibu to Increase Financial Literacy, Youth Savings
- MICROCAPITAL BRIEF: Thailand’s Bank of Ayudhya (Krungsri) Acquires Cambodian Microfinance Institution Hattha Kaksekar Limited (HKL)
- MICROCAPITAL BRIEF: Bank of the Philippine Islands (BPI) Targeting Microentrepreneurs via Microfinance Institution, BPI Direct BanKo
- MICROCAPITAL BRIEF: MSME Lender FondiBesa Buys VisionFund Albania
- MICROCAPITAL BRIEF: Hedge Fund Route One Buys 0.88% Equity Stake in India’s Bharat Financial Inclusion for $15m