BANK OF TANZANIA
PROSPECTUS FOR TREASURY BONDS
The Bank of Tanzania, as fiscal agent for the United Republic of Tanzania invites applications for the above bond whose terms and conditions are given thereunder:-
Issuer: United Republic of Tanzania
Agent: Bank of Tanzania
Mode: By auction
Price: Par value
Maturity: Two years
Interest: Uniform rate based on bids received during the auction determined; Fixed during the tenure of the bond.
Interest Payments: Semi-annual
Minimum Amount: TZS One million
Tax: Exempted from withholding tax
Participation: Open for all (after licensing of Primary Dealers, it will be restricted to Primary Dealers)
Auction Date: Weekly every Wednesday.
Registration: Register will be kept in the Domestic Market Department of the Bank of Tanzania.
Once Primary Dealers are appointed there will be a commission for agents.
GENERAL INFORMATION
1.0 Bidding Process:
 | A press release will be issued a week prior to the auction date. This announcement will indicate the terms and conditions of issue. |
| Bids will be submitted on the application forms provided by the BOT. These forms must reach the Bank of Tanzania by 11:00 a.m. of the auction day. |
| Each bid will be for a minimum of TZS 1,000,000= and in multiples of TZS 1,000,000=. The Bank of Tanzania reserves the right to reject any bid or part of any bid. |
| The Bank of Tanzania will be the only issuing agent. |
2.0 Settlement Arrangements:
| Successful bids will be settled by 3:00 p.m. on the settlement date. The settlement date will be the next day after the auction date. |
| Successful bidder(s) who fail to settle their bids will be banned from four (4) subsequent auctions. |
| Treasury Bonds certificates will be issued ten days after the settlement date in various denominations, such as TZS 1,000,000=, 2,000,000=, 5,000,000=, 10,000,000=, 20,000,000= 50,000,000=, 100,000,000=, and 200,000,000=. |
3.0 Interest and Principal Payments:
| Interest will begin to accrue from the settlement date, which will henceforth be referred to as the value date. This interest is payable semi-annually. If an interest payment date falls on a holiday, payment shall be postponed to the next business day. |
| The bond will be repaid at par on the maturity date. |
4.0 Secondary Market Trading:
| The bonds will also be tradable in the Dar es Salaam Stock Exchange (DSE). |
| The bonds will be discountable to any party other than the BOT. |
5.0 Loss:
Loss of bonds must be reported to the police and the Bank of Tanzania. This must also be published in a paper of wider circulation. The bond will be replaced 1 month after that notice. In case of mutilated certificates, the remaining portion of the certificate should be submitted to the Bank of Tanzania for assessment before replacement is made.
Domestic Markets Department
March 1998