This is the third segment of the five-year 120bn/- corporate bond programme which the TMRC will issue in tranches.
Speaking during the event, the commissioner for financial sector development in the Treasury, Dr Charles Mwamwaja hailed TMRC for taking up its role of improving the housing sector by financing affordable loans using stock markets.
TMRC has enabled the floating of reduced interests for loans, with beneficiaries of its mortgage loans being low income earners apart from middle and high incme earners, he stated, noting that the government's zeal is to enable citizens to get safe and better homes.
Before TMRC was introduced ten years ago the average mortgage loans interest charge stood at 25 per cent, but soon after it commenced operations the rate dropped to 16 percent at present. Loan payment period has been extended from five to seven years to 15 to 25 years, he elaborated.
TMRC and other institutions need to continue working hard to ensure that more people access affordable mortgage loans.
TMRC chief executive officer Oscar Mgaya said the third tranche listed on Thursday is a follow up issuance after successful issuance of tranche one and two which were oversubscribed by 4 and 2 per cent respectively in 2018 and 2019.
For the third tranche the company managed to collect 8.89bn/- thus surpassing the target of collecting 7bn/-, an over subscription of seven percent, he said.
This tranche has performed better due to investors and citizens’ awareness, while also showing how TMRC is trusted by local and foreign investors, he asserted.
Moremi Marwa, the DSE chief executive officer, said the amount to be collected from this corporate bond sale will provide cheap loans to people and finance other development projects in order to improve the housing sector.
The number of banks offering mortgage loans has increased to 31 as of March from three in 2010 and mortgage interest has decreased to 16 and 19 per cent from 22 and 24 per cent respectively, he elaborated.
Marwa urged that banks, financial institutions and district councils join capital markets so as to access funds and facilitate implementation of various development projects with their areas.
TMRC is a private sector financial institution established in 2011 to support banks in mortgage lending by refinancing their mortgage portfolios. The company has recorded impressive growth in interest income, net interest income in refinance and pre-finance mortgages over the last five financial years.
Each financial indicator grew at compounded annual growth rate of 47 percent, 19 percent and 40 percent respectively during the period 2012 to December 2017.