Letshego expands financing options
Growing appetite for the local capital markets has inspired Letshego Botswana to issue P2 billion domestic medium-term note programme, for its expansion plans.
According to the micro-lender, the programme is to expand its inclusive finance offering and broaden its financing options, building on its established relevance, strong balance sheet and familiarity to the capital markets.
The new note programme for Letshego Botswana reinforces the company’s commitment to expanding access to affordable financial services, particularly for underserved communities while driving digital transformation. In addition, the company believes the initiative will strengthen the company’s funding base and accelerate inclusive financing solutions. “This note programme is a key enabler of our strategy to deepen financial inclusion,” said Chief Executive Officer of Letshego BOLESWA (Botswana, Lesotho and Eswatini), Kgotso Bannalotlhe. “It positions us to better serve our customers, diversify our funding sources, and deliver long-term value to stakeholders.”
He said the P2 billion domestic medium-term note programme is an unlisted debt issuance initiative, enabling Letshego Botswana to raise capital through the issuance of fixed and floating rate notes in various tranches. The tenor of the notes will vary per issuance. Kgotso indicated that the programme builds on the company’s historical capital markets engagement and is part of its broader financial inclusion and innovation strategy.
“Proceeds from the note programme will support the growth of personal loans, digital loans via mobile platforms, affordable housing loans, and purchase order financing and micro-insurance solutions tailored for micro and small entrepreneurs. He said the programme is designed to diversify Letshego’s funding mix, enhance liquidity, and reduce the overall cost of capital through broader access to institutional and developmental investors. The initiative targets institutional investors, pension funds, and development finance institutions that are committed to fostering inclusive and sustainable economic growth in Botswana.
“This programme strengthens our balance sheet and enhances our ability to deliver sustainable financial solutions at scale,” added Phindile Ndladla, Chief Financial Officer of Letshego Botswana. “It also demonstrates our disciplined approach to capital management and long-term value creation.” The key transaction partners include RMB Botswana, who are the arranger and dealer, Armstrongs legal advisors, RMB Botswana, the transfer agent and trustee, Kewagamang legal, calculating and paying agent and Desert Secretarial Services. Meanwhile Letshego Botswana expects to undertake an investor roadshow, targeting the first tranche issuance within the current quarter.