Deposit- taking microfinance institution Getbucks today said it is in the process of raising $30 million through a bond, the first such instrument to be listed on the Zimbabwe Stock Exchange.
The company said it has already raised $5.4 million as part of the money raising initiative.
The listing of debt securities on the ZSE was approved by Securities Exchange Commision (SECZ) in June last year for a minimum of $1 million, thereby enabling companies to raise capital through issuance of debt securities.
“Notice is hereby given that GetBucks Financial Services Limited (“GetBucks Zimbabwe” or the “Issuer” or “the Company”) is in the process of establishing a listed $30 million Medium Term Note Programme. The Issuer has raised approximately $5.4 million in the first Series of the Note Programme,” said the ZSE in a statement.
“The Zimbabwe Stock Exchange (“ZSE”) has granted the Issuer a financial instrument listing and the Note will be listed on the ZSE on or about 26 April 2017…,” it added.
An interest rate of 11 per annum will apply and interest payments will be made monthly while capital redemption will be at the end of tenure which is approximately 33 months.
Getbucks was adequately capitalized with a net equity position of $11.8 million as at December 31, 2016, a capital position which is well above the minimum regulatory threshold of $5 million for deposit taking microfinance institutions.-The Source
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