Tanzania teachers’ commercial bank in pipeline

Tanzania Teachers Union (TTU) has said the much awaited Tanzania Teachers Bank (Mwalimu Commercial Bank) has finally taken shape and that the initial public offer is expected to start from April 8 this year.

TTU President, Mr Gratian Mukoba (pictured), told a news conference in Dar es Salaam that an application which was submitted to the Capital Market & Securities Authority (CMSA), has been approved.

“We are pleased to announce to all teachers and general public that intended formation of Mwalimu Commercial Bank PLC has finnaly taken shape, the approval has been obtained from CMSA to sell shares to the public,” said Mukoba.

Either, he said the bank is expected to start with core capital of not less than 25bn/- well above the minimum requirement of the Bank of Tanzania (BoT) of 15bn/-.

He said teachers who are active members of TTU have been given 50,000/- each as incentives by their union which will enable them buy at least a minimum of 100 shares.

He said the union is encouraging its members to buy more shares to boost the capital of their bank adding that Initial Public Offer (IPO) is to all members of the general public.

“To facilitate this IPO, a mobile banking facilities will be used for the first time ever in our country for applicants to pay using their mobile phones from wherever they are in the United Republic of Tanzania without going to town to buy their shares,” he said.

Mr Mukoba mentioned others who will be involved in the IPO process as registered stockbrokers and all branches of NMB bank. He said operational roadmap and timetable was proposed by the IPO advisers and approved by the Board of Directors and founding shareholders who are TTU and the Teachers Development Company Limited (TDCL).

He said according to the timetable, they expect to start selling shares on 8th April and selling will continue for one month upon which the new capital structure will then be submitted to the Bank of Tanzania for their review before issuing a commercial banking licence.

“Upon receiving licence, Mwalimu Commercial Bank will begin process of hiring staff, preparing the bank headquarters and installing bank software ready to takeoff, and MCB plans to open its doors for business on 2th November this year however shares are expected to be listed for trading on 2nd July,” said Mukoba.
Source: Daily News, reported from Dar es Salaam, Tanzania
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