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Tanzania Mortage Refinance Company Limited (TMRC) has received all the necessary approvals for its five years Corporate Bond Insurance Programme worth TZS 120 billion.
The programme received the green light from Capital Markets and Securities Authority (CMSA) as well as the Dar es Salaam Stock Exchange. TMRC corporate binds will be listed on the DSE.
TMRC Chief Executive Officer Oscar Mgaya said; “We have received all the necessary approvals and we intend to go to the market very soon.”
The CMSA and DSE approval also included the go-ahead for TMRC to issue its first Tranche of the corporate bond, which will be TZS 12bn. A corporate bond is one that is issued by the corporation to raise financing for a variety of reasons such as ongoing operations, M&A or to expand the business.
TMRC is raising the funds to support its operations of mortgage refinancing. “It was envisioned from its inception that TMRC will source funds from the capital markets through bond insurance among other sources,” said Mgaya.
“It was just a matter of time and now is the right time given the declining interest rates environment.” TMRC is specialized private sector financial Institution that provides long-term funding to financial institutions for the purpose of mortgage lending.
It has the objective of supporting financial institutions to do mortgage lending by refinancing Primary Mortgage Lenders’ (PML’s) mortgage portfolios.
This type of lending is also known as wholesale or secondary market lending. TMRC is neither taking deposits nor lending directly to individuals. It refinances mortgage loan portfolios rather than individual mortgage loans and caters to banks rather than individuals borrowers.
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