CRDB Al Barakah Sukuk raises a historic TZS 125.4 billion and USD 32.3 million

CRDB Bank today announced the historic performance and official listing of the CRDB Al Barakah Sukuk, marking a breakthrough in the development of Tanzania’s capital markets and the advancement of Islamic finance in the country. Sukuk has set new records after raising TZS 125.4 billion, representing 418% oversubscription, alongside USD 32.3 million, surpassing its USD 5 million target by a remarkable 646%. Officiating the listing ceremony, Deputy Permanent Secretary in the Ministry of Finance, Dr. Elijah Mwandumbya, praised the achievement as a national milestone. “The extraordinary performance of this Sukuk is a clear testament to the maturity of Tanzania’s capital markets and the strong appetite for innovative investment products,” says Dr. Mwandumbya. “The Government remains committed to strengthening the regulatory environment, including finalizing dedicated Islamic finance legislation that will enhance transparency, deepen investor protection, and position Tanzania as a competitive hub for Shariah-compliant finance in Africa,” emphasizes Dr. Mwandumbya. Speaking during the event, CRDB Bank Group CEO and Managing Director, Abdulmajid Mussa Nsekela, noted that the results exceeded every expectation. He confirmed that the Sukuk attracted over 1,000 investors, including individuals, institutions, religious groups, and international participants from more than seven countries. “What we have witnessed is unprecedented. Raising TZS 125.4 billion and USD 32.3 million is not only a success for CRDB Bank, but also a vote of confidence for Tanzania. More than TZS 70 billion was invested by individual Tanzanians, demonstrating growing financial literacy and trust in our markets, while over TZS 50 billion came from international investors, affirming Tanzania’s rising profile as a destination for Islamic finance,” says Mr. Nsekela. Mr. Nsekela adds that the Sukuk is aligned with the Bank’s long-term plan to mobilize USD 300 million over a period of five years through Shariah-compliant instruments to support development projects, expand SME financing, and deepen financial inclusion. Representing the Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Exaud Julius remarked that the success recorded in the sale of the CRDB Al Barakah Sukuk has been largely underpinned by sustainable policies aimed at enhancing the nation’s investment environment. “These results clearly demonstrate a growing public confidence in investing in corporate bonds,” Julius stated. He further noted that, following the listing of the CRDB Al Barakah Sukuk, the total capitalization on the Dar es Salaam Stock Exchange has increased to TZS 13.7 trillion from TZS 13.5 trillion, alongside a rise in the number of both domestic and international investors. The Dar es Salaam Stock Exchange (DSE) CEO, Peter Nalitolela commended the Sukuk’s successful listing, affirming that its oversubscription demonstrates strong investor confidence in Tanzania’s sound regulatory environment. He highlighted that the listing will enhance liquidity, broaden participation, and place Tanzania in a stronger position relative to global Islamic finance centers such as Kuala Lumpur, Dubai, Riyadh, and Manama. Chairperson of the CRDB Bank Board of Directors, Professor Neema Mori, applauded the leadership demonstrated throughout the Sukuk issuance process and the strategic importance of the achievement. “This remarkable investor response is a proof to our commitment as a Board to champion innovation, strengthen corporate governance, and expand opportunities for ethical and inclusive finance,” said Professor Mori. “We are especially encouraged by the trust shown by both local and international investors, including partners such as British International Investment (BII).” The Chairperson of the Shariah Advisory Board for Al Barakah, Abdul Mohammed, described the Sukuk as a transformative achievement for the country. He welcomed the Government’s ongoing effort to establish a national Islamic finance law, noting that the framework will open opportunities for Tanzania to engage with highly liquid markets such as the Gulf Cooperation Council (GCC). The listing ceremony at the Dar es Salaam Stock Exchange was marked by a symbolic bell ringing, officially welcoming the Sukuk into the secondary market. The listing provides investors with a regulated platform for trading, transparency, and long-term opportunities in ethical investment. Since its establishment in 2021, CRDB Al Barakah has grown rapidly, now serving over 400,000 customers, holding more than TZS 350 billion in deposits, and disbursing over TZS 287 billion in Shariah-compliant financing. The success of the Sukuk marks a new era for Islamic finance in Tanzania and underscores the country’s capacity to attract substantial regional and international investment.