Botswana’s top micro-lender, Letshego Holdings, has completed a Medium Term Note (MTN) programme listing on both the Johannesburg (JSE) and the Botswana Stock Exchange (BSE).
Letshego completed an issue of the first tranche under the MTN as part of the programme, raising R700 million on the capital markets to support the continued growth of the Letshego Group.
“This is the first and largest inward listed bond by any Sub Saharan corporate on the JSE and attracted RSA based as well as international investors,” Letshego Chairman John Burbidge said on Wednesday.
Further he said a combination of fixed and floating senior secured bonds will be issued on 13 December 2012 under this first tranche.
The Floating Rate Bond, the LHL01 due 13 December 2015, raised ZAR 281 million and was issued at a credit spread of 500 basis points over the 3-month JIBAR rate. The initial rate payable will be 10 percent nominal annual compounded quarterly.
The Fixed Rate Bond, the LHL02 also due 13 December 2015, raised ZAR 194 million and was issued with a fixed coupon of 11 percent compounded semi-annually, which equates to a credit spread of 525 basis points above the RSA government R157 bond.
The Floating Rate Bond LHL03 due 13 December 2016 raised R225 million and was issued at a credit spread of 600 basis points over the 3-month JIBAR rate. The initial rate payable will be 11.125% nominal annual compounded quarterly.This is a debut issue by Letshego Holdings Limited under a JSE listed ZAR 2.5 billion Medium Term Note (MTN) program.