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Tanzania's Capital Markets Set for a Boost with Two New Investment Products

Strategic Insights

— 1 min read

Tanzania's capital markets are poised to undergo significant changes with the launch of two pioneering products by Vertex International Securities Ltd. The company aims to raise Sh10 billion through the introduction of the Vertex International Securities Exchange Traded Fund (VIS-ETF) and the Vertex Bond Fund. These innovative investment products are designed to increase market liquidity, provide a transparent and cost-effective investment avenue, and cater to both retail and institutional investors.

Key Takeaways:

  • Vertex International Securities Ltd is targeting to raise Sh10 billion through the launch of two new products: the Vertex International Securities Exchange Traded Fund (VIS-ETF) and the Vertex Bond Fund.
  • The VIS-ETF will be the first exchange-traded fund listed on the Dar es Salaam Stock Exchange (DSE), holding a diversified portfolio of high-performing listed stocks, including CRDB Bank Plc, NMB Bank Plc, National Investment Corporation of Tanzania (NICO), and others.
  • The fund aims to mobilise Sh5 billion through the issuance of 50 million units at Sh100 each, with a minimum purchase of five units to ensure broad accessibility.
  • The VIS-ETF is designed to boost market liquidity, offering investors a transparent and cost-effective investment avenue with reduced brokerage commissions.
  • The fund prioritises transparency and efficiency, with market makers involved to maintain price stability and ensure fair and efficient trading.
  • The Vertex Bond Fund is structured as a Collective Investment Scheme, investing in fixed-income securities, including deposits, treasury bills, and bonds.

Statistics:

  • Sh10 billion - the target amount to be raised by Vertex International Securities Ltd through the two new products.
  • Sh5 billion - the amount to be mobilised by the VIS-ETF through an Initial Public Offering of ETF shares.
  • Sh100 - the price of each unit of the VIS-ETF, with a minimum purchase required of five units.
  • 50 million units - the total number of units to be issued by the VIS-ETF.
  • 5 - the minimum number of units required for purchase.
  • 10% - the reduced brokerage commission offered by the VIS-ETF.
  • Dar es Salaam Stock Exchange (DSE) - the exchange where the VIS-ETF will be listed.

Sources:

  • HT Digital Content Services with permission from The Citizen.

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