Sunday, May 26, 2024

BSB Bond listing expected to take the bank to a new level

The Botswana Savings Bank (BSB) has successfully entered the Botswana Stock Exchange (BSE) bond market with a new listing that is set to expand the bank’s horizons in raising capital.

The bank’s bond was issued under their P1 billion note programme.

It has been part of the January 2023 edition of the BSE opening bell ceremony. BSB bond listing is said to be an opportunity for further growth of the organization.

More than that, it represents opportunity and a means for sustainable growth for the bank.

BSB Chief Executive Officer (CEO) Nixon Marumoloa is of the view that the development is in line with their Lesedi 2025 strategy and cements the pathway towards the attainment of their vision to be a leading “Botswana owned integrated financial services provider.”

“As we list, we assist in opening the floor for more active participation in the domestic market, ensuring Batswana play a meaningful and active role in the shaping of our national economy,” said Marumoloa.

He believes that the importance of transactions such as those, especially as government seeks to reduce dependence on government subventions by State Owned Enterprises (SOEs), is paramount.

He has said that the listing further solidifies BSB’s brand equity in the market, reaffirming their commitment to the community and country as a trusted financial partner. Marumoloa further stated that BSB bond issuance sets in motion a series of events that will catapult the BSB to the next level and added that BSB is on a strong growth trajectory.

“Eventually, we will reach the full P1 billion that this bond seeks to achieve, and to us at the BSB, this One Billion Pula figure is a massive number,” he said.

The bank reported a total asset book having grown from P144 million in 2005 to P2.7 billion in December 2022. He said they have grown the loan book by P2.0 billion in the last two years and intend to grow by a further P2 billion in the next two years.

BSE CEO Thapelo Tsheole stated that their role as the BSE is to operate and regulate the securities market in Botswana.

He added that in the broader economy and the financial system, the BSE performs a crucial function of facilitating the formation, allocation and mobility of capital. He said as with many other exchanges, the BSE is an organized and regulated marketplace where equity and debt securities are listed and subsequently traded on a continuing basis. He also stated that the BSE addresses the needs of issuers seeking finance at reasonable cost and of investors willing to provide the finance according to their perception of risk and return.

“A bond is a debt instrument acknowledging an obligation of indebtedness to a lender by the issuer of the bond for a specified period of time and with a pre-determined interest rate or coupon rate. Bonds are deemed less risky in comparison to shares because of the contractual obligations of the borrower to the lender as regards payment of interest and repayment of principal, among other things,” he said.

BSB Chairperson Goitsemang Morekisi stated that what has been achieved has shown the importance of strategic partnership in their endeavor to serve and develop the nation of Botswana. She added that it is a shared success is that much greater than that of a single entity, for as their work to co-create and collaborate.

“Like the weavers building their nests, slowly, judiciously, diligently and carefully, we at BSB work to deliver on our Lesedi 2025 strategy, deliver on our vision, and deliver on the promise we make to our people, being our shareholders”


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