PROJECT

Projects

Summary of Investment Information

Project Number

37277

Company Name

TANZANIA MORTGAGE REFINANCE COMPANY LIMITED

Date SPI Disclosed

Aug 30, 2018

Country

Tanzania

Region

Africa

Projected Board Date

Oct 1, 2018

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Jun 12, 2021

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Jun 20, 2019
Signed : Sep 4, 2019
Invested : Dec 12, 2019

Sector

Secondary Mortgage Institutions

Additional Project Attributes

Blended Finance

Project Description

The proposed Project consists of a funding package to Tanzania Mortgage Refinancing Company (“TMRC” or “the Company”), comprising of (a) a straight equity investment of up to US$2 million and (b) participation in TMRC’s Medium Term Note (“MTN”) Programme of up to US$10 million equivalent in Tanzania Shillings (“TZS”). The Project will strengthen TMRC’s balance sheet and enable long-term support for the growth of the mortgage financing market in Tanzania. The Project will be supported by the Local Currency Facility (“LCF”) of the IDA18 IFC-MIGA Private Sector Window (”IDA PSW”), created by the Word Bank Group to catalyze private sector investment in IDA countries, with a focus on fragile and conflict-affected states. The LCF will help deepen the regional capital markets by supporting longer-term local currency bond issuances, and will contribute to make homeownership more affordable thanks to the extension of mortgage loans maturities.     

Associated Advisory Engagement

The investment transaction will be accompanied by a comprehensive advisory services package, designed to support TMRC as well as participating financial institutions, improving risk management capacity, and increasing general awareness of mortgage financing.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation