Letshego Holdings Namibia Lists Africa's First Social Bond, Raising N$260 Million

In a groundbreaking move, Letshego Holdings Namibia Limited, a subsidiary of the pan-African finance entity, has listed Africa's first social bond on the Namibian Stock Exchange (NSX). The bond issuance successfully raised N$260 million through three-year senior unsecured notes, attracting bids totaling N$322 million from five investors.

This listing marks the first social bond by a Letshego subsidiary, aligning with the company's strategy to leverage social financing opportunities and improve lives through inclusive financial solutions. Dr. Ester Kali, Country Chief Executive of Letshego Namibia, emphasized the significance of this achievement, stating, *"A social bond listing evidences our commercial purpose to improve lives, while leveraging the opportunity to access a rapidly increasing pool of social financing, globally."*

The social bond listing is part of Letshego Namibia's broader efforts to diversify its funding sources and benefit from local currency funding. The company's Social Financing Framework was independently evaluated and approved prior to the listing, ensuring compliance with industry and listing regulations. This framework aims to ensure that the funds raised are used effectively to support projects that deliver tangible social benefits.

This listing sets a precedent for future social bonds in Africa, potentially unlocking new funding sources for socially responsible projects. As a result, it could lead to increased investment in underserved communities and contribute to more inclusive economic growth.

Aupa Monyatsi, Group Chief Executive of Letshego Africa Holding, highlighted the importance of achieving social and sustainable impact through their business model. He remarked, *"Achieving a tangible social and sustainable impact is at the heart of our business model, and this listing is a significant milestone in our journey. "*

Letshego Namibia has been a notable player on the Namibian Stock Exchange since its initial public offering in 2017. The company has consistently invested in and leveraged the local capital market through various medium-term note programs. With a presence in 11 African markets, Letshego focuses on providing inclusive financial solutions that cater to underserved populations.

The social bond listing has introduced Letshego Namibia to an expanded pool of social investors, thereby deepening confidence in the company's credentials. Guided by local market nuances and anchored by global and local industry guidelines, the listing represents a significant step in Letshego Namibia's ongoing commitment to social impact.

In summary, Letshego Holdings Namibia's pioneering social bond listing on the NSX underscores its dedication to leveraging social financing to improve lives. The successful N$260 million issuance not only diversifies the company's funding sources but also sets a precedent for future social bonds in Africa.

Key Takeaways

• Letshego Namibia lists Africa's first social bond on Namibian Stock Exchange (NSX).
• The bond raises N$260 million through 3-year senior unsecured notes.
• The listing diversifies funding sources and benefits from local currency funding.
• The social bond sets a precedent for future social bonds in Africa.
• The listing aims to improve lives through inclusive financial solutions.