British International Investment (BII), the UK’s development finance institution and impact investor, is providing an anchor investment of up to $15 million to support the launch of CRDB’s Al Barakah Sukuk. The innovative Sharia-compliant bond is designed to promote inclusive financial access and accelerate investment in ethical and socially responsible enterprises across Tanzania and the broader East African region.
The Sukuk, which adheres strictly to Islamic finance principles, targets raising TZS 30 billion and USD 5 million, with green-shoe options that could increase the total to TZS 40 billion and USD 7 million, respectively.
Tanzania’s first large-scale Islamic bond issued by a private sector institution marks a major milestone in the country’s financial landscape. The CRDB Al Barakah Sukuk is not only the largest Sharia-compliant bond ever issued by a financial institution in Tanzania, but also the first dual-currency Sukuk to be offered in the market. Its launch sets a precedent for future innovation in Islamic finance, with the potential to unlock underutilised capital from both retail and institutional investors.
Dr. Jakaya Mrisho Kikwete, the 4th President of the United Republic of Tanzania, said: “This bond is a revolutionary step forward in democratizing capital markets in our country. It enables participation from a previously excluded segment of our population due to religious beliefs, by creating a shariah compliant investment avenue. This is not just a win for financial inclusion, but a win for ethical development. I am confident that this bond will exceed expectations, just as CRDB’s previous landmark issuances have,”
Marianne Young, British High Commissioner to Tanzania, stated: “The UK is proud to stand alongside Tanzania in driving innovation in sustainable finance. Through British International Investment, we are supporting CRDB’s bold leadership in introducing Tanzania’s first Islamic bond at scale. This milestone reflects the strength of our Mutual Prosperity Partnership and our shared ambition to mobilise £1 billion in UK-backed investment by 2030. It is also BII’s first Islamic finance product globally, and we are incredibly proud that it is happening here in Tanzania. This Sukuk will create new pathways for inclusive growth by offering ethical, accessible investment options that benefit the real economy.”
Ndaba Mpofu, Managing Director and Head of Financial Services Debt and Trade Finance at BII commented: “Our investment in CRDB Al Barakah Sukuk reflects BII’s commitment to deepening capital markets in Africa and enhancing the capacity of domestic financial institutions. This pioneering Sukuk will expand access to financial services for corporates and MSMEs, helping to create new opportunities for business owners and communities across the region.”
Abdulmajid Mussa Nsekela, Group CEO and Managing Director of CRDB Bank, stated: “This bond reflects our belief that finance must be inclusive and responsive to the needs of every Tanzanian. Through this Sukuk, we are opening doors for more people to participate in capital markets without compromising their faith or values. It is also a catalyst to unlock capital for projects that are ethical, sustainable, and beneficial to communities.”
