UTT’s Bond Fund IPO raises over 15.9bn/- in a month

21Nov 2019
Beatrice Philemon
The Guardian
UTT’s Bond Fund IPO raises over 15.9bn/- in a month

UTT Asset Management and Investor Services’ Bond Fund has raised 15.9bn/- during a month long initial public offer period which ended mid October this year.

UTT-AMIS Managing Director, Simon Migangala.

UTT AMIS’ Senior Public Relations and Marketing Manager, Rahim Mwanga said in Dar es Salaam this week that after the IPO period, the Bond Fund has now entered the secondary market and will sell at 101/- from 100/- which was the IPO price.

“We would like to invite prospective investors to come forward and by some part of the bond and earn some dividend in future,” said Mwanga who stated that 1,400 investors took part during the IPO which started mid September this year.

He said the bond which interest pegged at seven year Treasury Bond is a lucrative vehicle fir any investors to put their money in with as little as 50,000/- of purchase. “All funds are accessible after three months of lock in period with payment being made within 10 days,” he noted while pointing out that investors can buy their stake using any mobile money platform.

Speaking during the IPO launch, UTT-AMIS Managing Director, Simon Migangala said the bond fund was aimed at ensuring that more Tanzanians including those in rural areas take part in collective investment schemes.

“UTT-AMIS is looking to widen the participation of all Tanzanians by putting initial investment to as low as 50,000/- where bond fund offers annual, semiannual and monthly income distribution,” Migangala said.

He said those investing 10m/-will be eligible for monthly income distribution while the 5m/-investors will receive semiannual earnings but for investors who part with 50,000/-, they benefiting from capital appreciation.

The UTT-AMIS CEO further said rural folks are targeted investors by the bond because they can use mobile phones to buy their stake without the need to visit physical agents or brokers most of who are urban based.