Letshego issues fresh bond in South Africa
Letshego Holdings Limited has announced that the new Johannesburg Stock Exchange (JSE) listed bond notes has boosted its total debt issuance to R880 million on the JSE.
The listed micro-lender and also a financial inclusion focused group with consumer, micro lending and deposit-taking subsidiaries across Southern, East and West Africa, said in a statement that it has successfully re-financed and issued new JSE-listed bond notes, raising R655 million in addition to an existing base of R225 million, bringing Letshego’s total debt issuance on the JSE to R880 million.
“The money was raised from a number of South Africa based fixed income investors, and the ZAR bonds are part of the Group’s strategy to diversify its funding portfolio, as well as to create depth in local debt capital markets. Settlement was on 14 December 2015,” reads the statement.
Letshego, group Managing Director, Chris Low said they had initially planned to raise R500 million and it was increased to R655 million due to strong appetite from financial institutions who like and understand the Letshego story.
“The fact that we provide international investors with geographic and credit diversification makes Letshego a good investment-destination for funds seeking sub-Sahara Africa opportunities,’’ said Low. The proceeds of the issue were partially used to refinance R475million of ZAR notes that matured in December 2015, whilst the remainder of the funding will be deployed to growing the Letshego franchise, and its financial inclusion agenda.
The three new ZAR issuances, that include both fixed and floating rate senior secured notes maturing in 2018 and 2019, are part of Letshego’s JSE-listed ZAR2.5 billion Domestic Medium Term Note Programme.
This is in addition to Letshego’s BWP350 million of bonds listed on the Botswana Stock Exchange, and MZN72 million in unlisted paper in Mozambique. Meanwhile the company, which operates in 11 African countries, is currently seeking to enter the continent’s biggest economy-Nigeria.
If it gets the nod, the company will acquire 100 percent of a depositing taking institution in Africa’s most populous nation. A similar deal is currently being pursued in Tanzania.