How the I&M Hatua Bond Works: A Guide to Investing in I&M Bank Tanzania’s Retail Bond Offer
The I&M Hatua Bond is a retail corporate bond issued by I&M Bank Tanzania that allows individuals to invest in a fixed-income product through the capital markets. The offer opened on August 3, 2026, and will close on September 4, 2026, giving investors an opportunity to earn fixed quarterly interest payments over a five-year period.
The bond offers a fixed annual coupon rate of 13%, with investments starting from TZS 500,000. Interest income earned from the bond is exempt from withholding tax, allowing investors to receive the full interest payout.
This guide explains how the I&M Hatua Bond works, its investment requirements, how to subscribe, and how returns are calculated.
Key Features of the I&M Hatua Bond
The Hatua bond has several features designed to make it accessible to individual investors:
- 13% Fixed Annual Interest Rate
The I&M Hatua Bond offers a fixed coupon rate of 13% per year. This means investors earn a predetermined return on their investment throughout the five-year bond period.
- Quarterly Interest Payments
Instead of receiving returns only at maturity, investors receive interest payments every three months. The payments are credited directly to their accounts.
- Five-Year Maturity Period
The bond has a five-year tenure. Investors receive regular interest payments during this period, while the initial investment amount is repaid when the bond reaches maturity.
- 0% Withholding Tax on Interest Income
Interest income earned from the I&M Hatua Bond benefits from a 0% withholding tax exemption, meaning investors receive their interest earnings without deductions from withholding tax.
- Minimum Investment of TZS 500,000
The bond is open to retail investors with a minimum investment amount of TZS 500,000, allowing individuals to participate without requiring large amounts of capital.
How to Invest in the I&M Hatua Bond
Investors can subscribe to the bond digitally through the I&M Hatua Bond portal or through the iTrust mobile brokerage application.
- Option 1: Investing Through the I&M Hatua Bond Portal
To invest through the official bond portal:
- Visit the I&M Hatua Bond Portal.
- Create an investor profile using personal details and valid identification documents.
- Select the amount you want to invest, with a minimum investment of TZS 500,000.
- Complete payment using the secure payment instructions provided through the portal.
Once the subscription process is completed, the investment application is processed through the bond issuance system.
- Option 2: Investing Through the iTrust App
Investors can also purchase the Hatua Bond through the iTrust mobile brokerage application. The process involves:
- Downloading the iTrust App from the Google Play Store or Apple App Store.
- Creating an investment account with iTrust Finance, the Lead Transaction Advisor.
- Selecting the I&M Hatua Bond from the available investment products.
- Entering the investment amount and authorising the electronic payment.
How Much Can You Earn From the I&M Hatua Bond?
The return from the bond depends on the amount invested and the 13% annual coupon rate. For example, an investor who invests TZS 10 million would earn:
- Annual interest income: TZS 1.3 million
- Quarterly interest payment: TZS 325,000
- Total interest earned over five years: TZS 6.5 million
- Principal repayment at maturity: TZS 10 million
Over the five-year period, the investor would receive TZS 6.5 million in coupon payments while the original TZS 10 million investment would be repaid at maturity.
Does the I&M Hatua Bond Compound Interest Automatically?
The I&M Hatua Bond pays fixed quarterly interest, meaning the coupon payments are distributed to the investor rather than automatically added back to the bond investment.
Investors who want to grow their returns further can choose to reinvest the quarterly interest payments into other investment options that offer compound growth.
For example, quarterly coupon payments of TZS 325,000 from a TZS 10 million investment can be allocated into other interest-generating investments to potentially increase long-term returns.
When Does the I&M Hatua Bond Close?
The I&M Hatua Bond offer opened on August 3, 2026, and will close on September 4, 2026. Investors interested in participating must complete their subscriptions before the closing date.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
