Tanzania 25-Year Bond Draws US$928 Million

TANZANIA · BONDS

Bids for Tanzania’s new 12.75% bond due in 2051 reached TZS 2.44 trillion (about US$928 million), nearly six times the offer. The Bank of Tanzania accepted TZS 550.36 billion (about US$209 million) at a yield of 10.84% on Thursday 15 October.

The Tanzania 25-year bond drew bids of TZS 2.44 trillion (about US$928 million) on Thursday 15 October. That was about six times the TZS 414.19 billion (about US$157 million) offered by the government through the Bank of Tanzania.

The Bank of Tanzania, the central bank and the government’s fiscal agent, accepted TZS 550.36 billion (about US$209 million). The weighted average yield to maturity was 10.84%, the lowest of the four 25-year auctions held in 2026.

The bond pays a fixed 12.75% a year and matures on 16 October 2051, so holders lend to Tanzania for 25 years. The offer was open to all investors, including foreign nationals, and the interest is exempt from withholding tax.

How the Tanzania 25-Year Bond Was Sold

The Bank published the call for tender on Friday 9 October and offered TZS 289.93 billion (about US$110 million) competitively. Another TZS 124.26 billion (about US$47 million) was set aside for non-competitive bidders, who accept the average price.

Bids closed at 11:00 Dar es Salaam time on Thursday 15 October, and settlement was set for Friday 16 October. The Bank’s auction calendar, dated Tuesday 15 September, had pencilled in Wednesday 14 October; no reason for the change is given.

The notice sets a minimum bid of TZS 1,000,000 (about US$380), in multiples of TZS 100,000 (about US$38). Bids are placed online through Central Depository Participants, the approved institutions through which investors bid.

Conversions use TZS 2,632.82 per US$1, the open.er-api.com rate of 16 October 2026 (00:02 UTC). The Bank of Tanzania’s own quotes that day were TZS 2,620.02 buying and TZS 2,646.22 selling per US$1.

What the Bids and Prices Show

In the competitive round, 973 bids totalled TZS 2.16 trillion (about US$820 million), or 7.4 times the amount offered. Only 99 bids won, and the Bank accepted TZS 426.08 billion (about US$162 million), which is 147% of the competitive offer.

In the non-competitive round, 1,574 bids totalled TZS 283.07 billion (about US$108 million) against TZS 124.26 billion (about US$47 million) offered. The Bank took TZS 124.28 billion (about US$47 million), roughly the amount offered.

Competitive bids ranged from 85.40 to 118.88 per 100 of face value, and the lowest winning price was 115.50. The weighted average price was 116.31, a premium, because the 12.75% coupon is higher than the yield investors demanded.

That price gives a weighted average yield to maturity of 10.84%, while the coupon divided by the price gives 10.96%. Tanzania’s statistics bureau puts inflation at 4.3% for September, so the yield is about 6.5 points above it, by newsroom arithmetic.

How the Result Compares With Earlier Auctions

The Bank held three earlier 25-year auctions this year, on 4 February, 24 June and 5 August. They sold a 13.25% bond at yields of 11.99%, 11.89% and 11.48%.

The new yield of 10.84% is 64 basis points below August’s result and 115 below February’s. A basis point is one hundredth of a percentage point, so 64 basis points is 0.64 points.

The August competitive offer was the same TZS 289.93 billion (about US$110 million). Competitive bids then totalled TZS 1.25 trillion (about US$473 million), so this round’s were 1.7 times as large.

The bond’s yield is only 5 basis points above the 10.79% on a 15-year bond sold on Wednesday 30 September. A 10-year bond sold on Wednesday 2 September yielded 10.69%, and a five-year bond on Wednesday 16 September yielded 9.53%.

The coupon on 25-year bonds has fallen from 15.75% in January 2025 to 13.25% in February 2026 and now 12.75%. A coupon is fixed at issue, so the yield is the better guide to current pricing.

What It Means for US Readers

Foreign nationals, including Americans, may buy the bond through approved Central Depository Participants, and its interest is exempt from withholding tax. A US investor would still need a broker with access, and the notice says nothing on US taxes.

The 10.84% yield compares with 5.43% on the 30-year US Treasury on Thursday 15 October, per the Treasury’s daily par yield curve. The gap is 5.4 points, and the bond pays only in the local currency, so a dollar-based buyer carries the currency risk.

The shilling stood at about TZS 2,632.82 per US$1 on 16 October, and its path over 25 years is unknown. The central bank’s 8 October statement puts reserves above US$6.0 billion, or 4.3 months of imports.

At about US$209 million accepted, the deal is modest in dollar terms, and the Bank does not say who bought it. The 25-year yield has fallen at each auction since February, from 11.99% to 10.84%.

What Is Not Known

The newsroom found no Tanzanian outlet reporting the result by Friday morning, so the figures rest on the Bank’s results page. The Bank’s press release page showed nothing on the auction.

The results page gives no split of bids by investor type or nationality, so foreign demand is not known. No Bank statement on who bought the bond had appeared by Friday morning.

The results page does not say whether the accepted amounts are face value or cash raised. If those are face amounts, the premium price means cash raised was higher, but the Bank does not say.

The Bank accepted 147% of the competitive offer, and no document opened says why. The notice gives the purpose only as financing and states no borrowing target for the quarter.

The non-competitive round drew TZS 283.07 billion (about US$108 million), yet the Bank took TZS 124.28 billion (about US$47 million). The table lists all 1,574 bids as successful, so how the cut was shared among them is not known.

The reason for moving the auction from Wednesday 14 to Thursday 15 October is not stated. The newsroom did not open a Dar es Salaam Stock Exchange notice, so the ticker and first price are unknown.

What Comes Next

Settlement was due on Friday 16 October, and secondary trading on the Dar es Salaam Stock Exchange starts on Monday 19 October. Trades will be in multiples of TZS 100,000 (about US$38), the notice says.

The Bank’s calendar lists Treasury bills on Wednesday 21 October and a reopening of a 20-year bond on Wednesday 28 October. The calendar says dates may change, and the central bank’s next policy meeting is on Wednesday 6 January 2027.

Frequently Asked Questions

What is the new Tanzania 25-year bond?

It is a fixed-rate Treasury bond, number 722, that pays 12.75% a year in two coupons and matures on 16 October 2051. It was auctioned on Thursday 15 October and will trade on the Dar es Salaam Stock Exchange from Monday 19 October.

How much did investors bid and how much did Tanzania accept?

Total bids were TZS 2.44 trillion (about US$928 million) against TZS 414.19 billion (about US$157 million) offered. The Bank accepted TZS 550.36 billion (about US$209 million), including TZS 426.08 billion (about US$162 million) of competitive bids.

What yield did the bond get?

The weighted average yield to maturity was 10.84%, with an average price of 116.31 per 100 of face value. That is below the 11.48% at the 5 August 25-year auction and the 11.99% of 4 February.

Can foreign investors, including Americans, buy it?

The notice says all investors, including foreign nationals, are eligible, and interest is exempt from withholding tax. Bids go through Central Depository Participants, which the notice does not list, so a US buyer needs a broker with access.

How does the yield compare with US Treasuries?

The 30-year US Treasury yielded 5.43% on Thursday 15 October, against 10.84% on the Tanzanian bond. The Tanzanian bond pays only in the local currency, so a dollar-based buyer carries the currency risk.

Sources: Bank of Tanzania, Treasury bond auction results, 12.75% 25-Year Treasury Bond No. 722, auction of 15 October 2026 and earlier auctions; Bank of Tanzania, call for tender, 12.75% 25-Year Treasury Bond No. 722, 9 October 2026; Bank of Tanzania, government securities auction calendar, second quarter of 2026/27, 15 September 2026; Bank of Tanzania, Monetary Policy Committee statement, 8 October 2026; Tanzania National Bureau of Statistics, inflation rate for September 2026, posted 10 October 2026; Bank of Tanzania, exchange rates for 16 October 2026; US Department of the Treasury, daily par yield curve rates, October 2026; open.er-api.com exchange rates (all accessed 16 October 2026).