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.



1.0 Bidding Process:

2.0 Settlement Arrangements:

3.0 Interest and Principal Payments:


4.0 Secondary Market Trading:

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