Tanga UWASA lists 53bn/- green bond for  water solutions

TANGA: THE Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA) has successfully listed its landmark 17.8 million EURO (about 53bn/-) green bond on the Luxembourg Stock Exchange (LuxSE).

This initiative aims to enhance access to clean and affordable water in Tanzania.

As the first green bond issued by a public institution in East Africa, it features a 10-year maturity and is designed to fund water infrastructure projects and environmental conservation efforts.

In a joint statement released on Friday, LuxSE and Tanga UWASA noted that the bond was opened to both domestic and international investors earlier this year, generating significant interest and resulting in a twofold oversubscription.

Around 65 per cent of the funding was sourced from domestic investors, while the remaining 35 per cent came from international investors.

“This reflects the increasing interest of the global investment community in sustainable opportunities in Tanzania,” reads the statement.

LuxSE CEO Julie Becker expressed delight at the bond’s listing, highlighting its role in mobilising international capital for essential services.

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“Access to safe and affordable water and sanitation is crucial for achieving the United Nations Sustainable Development Goals and is the cornerstone of health and safety,” she said.

The announcement coincided with a visit of a Tanzanian delegation to Luxembourg, which included representatives from the Ministry of Finance, Ministry of Water and other public authorities.

During this visit, the listing of Tanga UWASA’s green bond was celebrated at LuxSE. The bond now featured on the Luxembourg Green Exchange (LGX), a leading platform for sustainable securities.

Minister for Finance Dr Mwigulu Nchemba lauded the bond as a significant opportunity for Tanzania to engage with the international market, potentially attracting new investments.

“We are actively developing a pipeline of transactions to support this trend in sustainable investments and are committed to enhancing our environment to attracting foreign and private sector investors,” he stated.

Tanga UWASA Managing Director, Eng Geofrey Hilly, emphasized that the bond’s listing on LuxSE underscores the utility’s dedication to providing sustainable water services.

He expressed gratitude to all investors and partners who supported the initiative, reaffirming the authority’s commitment to meeting relevant standards and investment obligations.

He further noted that the issuance highlights the vital role that subnational entities like Tanga UWASA can play in unlocking local currency financing for sustainable development projects in Tanzania.

“The proceeds from the bond will help thousands of households gain access to safe and affordable water, while also protecting the natural resources of the Zigi River and supporting other significant environmental projects,” said Eng Hilly.

This historic achievement was made possible through the critical support of the UN Capital Development Fund (UNCDF), which served as the lead development finance advisor and technical partner throughout the bond issuance process.

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UNCDF’s efforts included project development, raising national awareness, creating a financing roadmap, and developing innovative risk mitigation strategies tailored to the Tanzanian context.

Mr Peter Malika, Head of UNCDF Tanzania, said: “The successful issuance and cross-listing of the Tanga Water Bond demonstrate our commitment to promoting sustainable finance and developing domestic capital markets in Tanzania. This bond issuance is part of our ongoing efforts to unlock domestic capital for sustainable development in the country.”