The bank’s Chief of Retail Banking, Filbert Mponzi said in Dar es Salaam on Friday that through its team of experts for treasury and securities operations, it also administers clients’ accounts, transaction settlements, collection of dividends and interest payments as well as tax support.
“In a nutshell, this means that by issuing custody services, NMB will do everything on behalf of its clients who have invested in government securities and in listed equities,” Mponzi said.
According to NMB Plc’s Treasurer, Aziz Chacha, repeated oversubscription of long term government securities and corporate bonds in recent days, signals that there is high appetite for such investment avenues in the economy.
NMB Plc announced in August that its three-year retail bond, which was issued in June this year, was over -subscribed by 33 percent. This, along with oversubscription of the government’s 20-year Treasury Bond signify that investors (individuals, institutions, corporate and banks), have cash which they want to invest in profitable ventures.
“This is what our custodial services entail. We simply want to take some services away from clients in the investing community so they can concentrate on other areas,” Chacha said. He said the bank through its custodial services makes the task of investing in T-Bills, T-Bonds and all other listed securities easier because it allows them to do so at primary market stage.
“We are making investment in government securities easy. You simply talk to us and we connect you to the Bank of Tanzania,” said NMB’s Fixed Income Trader, Agnes Mayoro. Mayo said being custodian for government securities, NMB will settle government securities traded at both primary and secondary markets.
“It will also collect the income or coupons or maturities and print a holding statements,” said the bank’s Senior Manager for Custodial Services, Avith Massawe.
Masawe said similarly, for being a custodian bank for all listed securities, NMB will also conduct settlement of traders’ equities, corporate bonds, T-Bonds and T-Bills while collecting clients’ incomes in forms of dividends and interest.
“We will also manage corporate actions such as right issue, proxy voting, annual general meetings and initial public offering,” he added, noting a statement to be organized by a custodial bank will be comprehensive as it consolidates all of a client’s securities into a single document.
Dar es Salaam Stock Exchange’s CEO, Moremi Marwa said with only 550,000 investors actively taking part in the trading of equities in a country of over 45 million people, more concerted efforts are needed to raise public awareness on the important of stock trading.
Bank of Tanzania’s Financial Markets Manager, Lameck Kakulu said with yields in a 20-year T-Bond going for as high as 17 percent, government securities are offering one of the most lucrative investment avenues for investors.