CRDB Bank PLC has announced the successful completion of its CRDB Al Barakah Sukuk issuance, which was oversubscribed by an extraordinary margin, reflecting the growing appetite for Islamic finance in Tanzania and across East Africa.
The offer, worth TZS 30 billion (about USD 12 million) and USD 5 million in two tranches, drew investor applications exceeding TZS 125.4 billion and USD 32.3 million respectively. The five-year Sukuk, a Shariah-compliant financial instrument similar to bonds but structured to avoid interest payments, marks a milestone in the country’s Islamic finance journey.
It demonstrates both local and regional investors’ growing confidence in alternative investment vehicles aligned with ethical and faith-based principles.
According to CRDB Bank’s official notice approved by the Capital Markets and Securities Authority (CMSA), the Sukuk issuance achieved a subscription rate of 418% for the Tanzanian shilling tranche and 646% for the US dollar tranche. The total accepted amount was TZS 125.4 billion and USD 32.3 million.
All valid applications were accepted, ensuring full participation for both local and international investors. The bank said it will distribute profits quarterly, with the TZS lot offering an annual profit rate of 12% and the USD lot offering 6% per annum.
The CRDB Al Barakah Sukuk forms part of the bank’s Five-Year Medium-Term Note Programme, approved by the CMSA in June 2025, worth the equivalent of USD 300 million. This issuance represents the third tranche under that programme and continues CRDB’s ambition to diversify its funding base while supporting infrastructure and sustainability projects.
The bank’s management expressed gratitude to investors and regulators, particularly the CMSA, for supporting the issuance. “This achievement was made possible by the collaborative efforts of the Capital Markets and Securities Authority, advisors, and investors who believe in our vision for sustainable financing,” CRDB Bank said.
The success of the Sukuk also highlights the deepening maturity of Tanzania’s capital markets, which are increasingly attracting diverse instruments beyond traditional debt and equity offerings. Sukuk, often referred to as Islamic bonds, comply with Islamic law (Shariah), which prohibits interest (riba) and speculative activities.
Instead of paying interest, Sukuk holders receive returns generated by the underlying assets or projects the funds finance. Globally, the Sukuk market has grown rapidly, reaching nearly USD 180 billion in new issuances in 2024, according to data from Refinitiv.
Tanzania, with its sizeable Muslim population and growing demand for inclusive financial products, is positioning itself as a key hub for Islamic finance in the region. The country joins Kenya, Nigeria, and South Africa in expanding regulatory frameworks to accommodate Islamic banking and investment.
The success of CRDB’s Sukuk comes amid a broader push across East Africa to deepen access to Islamic finance. Kenya, Uganda, and Rwanda have all been developing frameworks for Shariah-compliant products, with Kenya recently seeing Islamic banks such as Gulf African Bank and DIB Kenya expanding operations.
The bonds will be listed on the Dar es Salaam Stock Exchange (DSE) on 12 November 2025, allowing secondary trading and further market liquidity.
As Tanzania’s financial sector modernizes, the success of the Sukuk offering could pave the way for similar products across East Africa. With global investors increasingly focusing on environmental, social, and governance (ESG) standards; Shariah-compliant finance rooted in ethical and risk-sharing principles may emerge as a strong complement to conventional banking.
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