Our investment
Description of the investment.
Description of the investment.
We invested in CRDB Bank Plc’s inaugural Sukuk bond to help improve capital market development and strengthen the capacity of domestic financial institutions in Tanzania.
By demonstrating this as a viable and replicable funding format, the investment aims to unlock both retail and institutional capital. This kind of capital is currently under-deployed or poorly utilised given the limited number of Sharia-compliant investable opportunities in the country.
The funds will be reinvested into the real economy through the growth of CRDB’s Islamic Banking Window, which is driving financial inclusion through the provision of growth capital for corporates and MSMEs previously underserved by the banking market.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Improved capital market development, strengthened capacity of domestic financial institutions to expand access to financial services, and increased opportunities for owners and employees of businesses (SDGs 8.3, 8.5, 8.10) |
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How?
| Primary | Secondary |
|---|---|
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By anchoring this bond, we will help demonstrate the viability of Sukuk structures as an investment and financing product to both commercial and retail investors and other local banks in Tanzania. |
Our investment will support the bank to grow its Islamic financing book, with loans going towards corporates and MSMEs. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Owners and employees (of corporates and MSMEs) |
Tanzania |
This facility will be directed towards corporates and SMEs in Tanzania and is expected to primarily benefit Sharia compliant borrowers. |
How much?
| Scale | Depth/Duration |
|---|---|
|
This facility will help to grow the Islamic financing book, supporting an expected $37 million - $56 million of newly originated loans. |
Impact expected to last beyond the lifetime of the facility if the catalysing markets thesis is realised. Impact for ultimate stakeholders expected to be significant and long-lasting where loans enable long-term, sustainable business growth. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Financial additionality: Given the nascent structure of the Sukuk asset class in Tanzania, and the high upfront costs and administrative intensity to organise such a raise, the bank is looking to DFIs to take up the role as anchor investor. It is unlikely that any other commercial investor would anchor the bond. We are anchoring the transaction with the public local currency tranche. This anchoring is expected to mobilise local investors (retail and corporate/institutional) into the local currency tranche and international institutional investors to invest in the US dollar tranche. |
Risk
Execution RiskRisk linked to the ability of the bank to raise the full targeted capital and grow their Islamic financing book in line with projections. Evidence RiskWhile CRBD will track reach to number of underlying MSMEs, visibility on the ultimate impact on these borrowers will be limited. CRDB will provide data on underlying loans financed through the facility, including information on MSME reach. Given the scarcity of Sharia-compliant investment products in the local market, this issuance is expected to particularly benefit the Muslim MSME population. |
Impact score
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Impact score (at point of investment)
The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. The Impact Score shown is based on the 2022-2026 Impact Score methodology. You can find out more here. The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party. |
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Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
The investment is classified as Medium-High E&S risk. We agreed on an E&S Action Plan with CRDB to update its exclusion list to mirror BII’s; enhance its E&S management system and external grievance mechanism to meet IFC Performance Standards requirements; align existing HR Policies to manage gender-based violence and harassment in the workplace.
Environmental and social risk
Medium-High
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- First published
:
When the investment was first published on the website database.
- December 2025
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2026
- Project number
:
An identifier number shared by investments in the same project.
- D8948
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- East Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Tanzania
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Financial services
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Diversified Banks
- Investment policy :
- Catalyst
- Investment type :
- Debt
- Start date :
- July 2025
- Amount :
- $15m
- Currency of investment :
- TZS
- Domicile
:
The company or investment fund’s place of incorporation.
- Tanzania
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
Type of investment portfolio that each investment is made under. Since 2014, we have run two investment portfolios: Catalyst and Growth. In addition, our Kinetic Portfolio enables us to manage concessional investment strategies.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- First published
Related investments made by BII into this company:
| Investment name | Commitment | Region | Sector | Start date | Status |
|---|---|---|---|---|---|
| Investment 01 | $12.08m | East Africa | Financial services | August 2015 | Exited |
