Tanzania is talking to banks about a syndicated loan of between $500 million and $800 million, with proceeds earmarked to finance development projects, a central bank director said.
Joseph Masawe, director of economic research and monetary policy, also told Reuters that Tanzania still intended to issue its first Eurobond but that it would not do so “at any cost”, noting that the cost of such borrowing had climbed. Several African nations have sold debut Eurobonds in the past the two years or so, including neighbouring Kenya and Rwanda, but turmoil on global markets has driven up yields on such issues, discouraging some other new sovereign borrowers.
Tanzania had in the past said it would seek to issue the Eurobond in financial year 2015/16, which started on July 1. Masawe said in an interview at the Bank of Tanzania headquarters in Dar es Salaam that the government was now in discussion with banks to raise $500 million to $800 million via a syndicated loan for this financial year.
“All these resources will be for investment in development projects, including infrastructure,” he said. “We intend also to go for a Eurobond. Definitely we will look at price, because it is not money at any cost,” added Masawe. “Tanzania intends to issue a Eurobond when the prices are favourable.”
