Letshego’s social bond raises N$322m

Letshego Namibia raised N$322 million on the Namibia Stock Exchange for the listing of the first social bond.

Meanwhile, N$260 million will be issued in three-year senior unsecured notes.

The proceeds will support financial inclusion for underserved communities by funding sectors such as affordable housing, healthcare, and education.

This comes as GCR Ratings upgrades the long-term issuer ratings for Letshego Holdings Namibia, Letshego Bank Namibia, and Letshego Micro Financial Services Namibia from A(NA) to A+(NA), indicating a lower risk of default.

The short-term issuer ratings of A1(NA) have been affirmed, and the outlook has been revised to stable, suggesting that GCR expects the companies’ creditworthiness to remain stable in the near future.

Letshego Namibia chief financial officer Karl-Stefan Altmann says this upgrade reflects Letshego’s enhanced competitive position, solid asset quality, strong capitalisation, and commitment to responsible lending.

Other key drivers of the upgrade are a strong financial performance where the group’s asset quality remained robust, with non-performing loans at 5,8%, below the industry average of 6%.

The company also had low credit losses at 0,3% and strong capitalisation with a GCR capital ratio of 42% as of December 2023.

Letshego continues to diversify its funding base while maintaining a resilient financial profile.

Liquidity remains adequate, with liquid assets covering short-term wholesale funding at 1,3x as of December 2023.

The company maintains it is well-positioned to sustain its growth trajectory and advance financial inclusion and economic development across Namibia.