Tanzania’s Treasury is seeking Tsh130 billion ($55.6 million) from the sale of a five-year fixed rate bond to its citizens and those from East and Southern African trade blocs.

The bond on auction on August 10 is the first to be opened to the East African Community (EAC) and Southern African Development Community (SADC) blocs, of which Tanzania is a member.

The five-year paper will be auctioned by the Bank of Tanzania (BoT) at a coupon rate of 8.6 percent.

In a June notice, the central bank said the government had gazetted a new law removing restrictions on the sale of its securities to foreign investors.

“BoT wishes to notify the general public that new Foreign Exchange Regulations, 2022 have been issued under the Foreign Exchange Act, Cap. 271, through Government Notice No. 294 of 2022, published in the Government Gazette on May 13 2022,” the banking regulator said.

Tanzania last offered a five-year Treasury bond at auction in May at the same fixed rate as the one on offer, worth Tsh116.37 billion ($49.8 million). The weighted average yield to maturity is 8.93 percent.

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