Letshego lists first social bond

Letshego Holdings Namibia has listed the Africa Group’s first social bond on the Namibian Stock Exchange.

According to a statement issued by the bank on Friday, the group’s inaugural social listing received total bids to the value of N$322 million and successfully issued N$260 million three-year senior unsecured notes across five investors.

“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,” Letshego Namibia chief executive Ester Kali said.

“Social bonds not only introduce Letshego Namibia to an expanded pool of social investors, but also deepens stakeholder confidence in our credentials-given industry and listing regulations require independent evaluations and approvals of our social financing framework prior to listing,” she said.

The statement says social bond issuances need to be guided by local market nuances and anchored by global and local industry guidelines and regulations.

Although several regional Letshego subsidiaries already access local capital via bond listings, Letshego Namibia is the first subsidiary to list a social bond, tapping into Africa’s growing social financing opportunities.

“Achieving a tangible social and sustainable impact from our pan-African inclusive financing products and solutions has been intrinsic to Letshego’s 25-year legacy in Africa, having first opened our doors in Gaborone, Botswana, in 1998,” Letshego Africa Holding chief executive Aupa Monyatsi says.

“Sustainability and ESG remain integral proponents across our geographies and business divisions, and core to our inclusive culture and how we do business. Namibia’s social bond leads the way for other subsidiaries to access the growing pool of social capital and financing vehicles, for the benefit of our strategy, and ultimately our customers, partners and communities,” he says.

Letshego Namibia’s social bond has been structured in alignment with the International Capital Market Association’s social bond principles, the proceeds of which will support the bank’s strategy to increase access, reach and affordability of productive financial solutions for more Namibians as specifically outlined in the group’s framework.

This includes the support of underserved individuals, micro and small entrepreneurs and small business owners, with inclusive products like affordable housing, healthcare and education.

The Rand Merchant Bank (RMB) was Letshego Namibia’s arranger, dealer, NSX debt sponsor, sustainability adviser and coordinator.

“Private sector players are increasingly coming to the forefront of solving development challenges. Noting Namibia’s socio-economic challenges, RMB used its wealth of expertise in sustainable finance to ensure the utmost social impact in the deal,” RMB Namibia chief executive Philip Chapman says.

“We navigated the various complexities coupled with our debt capital markets capabilities to introduce Letshego Namibia’s first-to-market social bond,” he addd.

Letshego Namibia is a subsidiary of Letshego Africa Holdings Limited, which has a presence in eleven Africa markets.
– email: matthew@namibian.com.na