Tanzania wants to issue a €755 million Eurobond

Sep 02, 2013

Tanzania will ask the International Monetary Fund (IMF) to raise its debt ceiling in a bid to issue $1 billion (€755 million) worth of bonds on international markets

Tanzania will ask the International Monetary Fund (IMF) to raise its debt ceiling in a bid to issue
$1 billion
(€755 million) worth of bonds on international markets.

The government wants the IMF to increase this ceiling by about $300 million for the 2013-2014 fiscal year, Minister of Finance William Mgimwa told the Financial Times.

He added that this eurobond would be maturing in five to ten years and that the funds will be used to invest in power generation and transport infrastructure.

According to Jeune Afrique, investors are attracted to Tanzania because of the recent discovery of large reserves of natural gas off the coast, although the economy remains heavily dependent on foreign aid.

The country’s offering of $600 million of seven-year securities in March was four times oversubscribed, reflecting the country's attractiveness to markets.ADNFCR-2976-ID-801632065-ADNFCR