Determinants of Green Bonds Issuance in Tanzania: Evidence from CRDB And NMB Bank

Abstract

Green bonds offer a promising mechanism for financing environmentally sustainable projects in Tanzania, yet the determinants of their issuance remain unclear. This study investigates the influence of financial, social, and infrastructural factors on green bond issuance, focusing on CRDB Bank and NMB Bank. A cross-sectional survey and quantitative approach were employed, with a sample of 163 employees selected through systematic sampling from a population of 680. Primary data were collected using structured questionnaires and analyzed using descriptive statistics and multiple regression analysis. The findings reveal that financial, social, and infrastructural factors have positive and statistically significant effects on green bond issuance. The study concludes that these factors are key determinants in Tanzania. It recommends that banks enhance financing of viable green projects, develop attractive financial products, and strengthen stakeholder engagement, while the government should implement supportive policies to promote green finance.