The first Sukuk bond issued by Imaan Finance Limited in Tanzania was oversubscribed by 36 percent. The company aimed to collect Tanzanian shillings 2 billion with a green shoe option of 1 billion Tanzanian shillings, but received bids totaling 2.72 billion Tanzanian shillings.
The bond issuance demonstrated the high demand for such sharia-compliant investment avenues in the country. Both institutional and individual investors participated, indicating a desire for non-interest-based financial assets. Economists praised the move as innovative and called for further exploration of new investment avenues.
The Sukuk bond provided an alternative for religious-conscious investors, and its reception highlighted the potential for future bond issuances of this kind. The Capital Markets and Securities Authority (CMSA) acknowledged the high demand and called for more Sukuk bond issuances.
The bond subscription was considered a success, and the management of Imaan Finance expressed gratitude to the Bank of Tanzania (BoT), CMSA, and other parties involved in its achievement. The allotted Sukuk was dispatched to holders accordingly.