Stanbic Bank Botswana Limited issued a P50 million 10-year subordinated unsecured floating rate note off their P 2 billion Note Programme.
The issue was structured as a Floating Rate Note (SBBL056) due 13 June 2021 and callable on or after five years. SBBL056 pays a floating quarterly payment of 91-day BoBC plus 130bps on 13 September, 13 December, 13 March and 13 June.
SBBL056 was successfully placed during tough market conditions and was oversubscribed by 126 percent. The proceeds of the issue will be used to address the bank’s ongoing expansion.
Managing Director of the unlisted bank Leina Gabaraane said he was pleased with the outcome of the issue which had a spread of a number of different investors ranging from life companies to asset managers, something that was indicative of the development of capital markets in Botswana and the depth of local investors.
Tasha Ferreira, Executive Director of Corporate and Investment Banking, mentioned that the oversubscription of the issue shows investor confidence in Stanbic Bank Botswana.
Taolo Modisi, Head of Debt Capital Markets for Southern and Central Africa, was proud to mention that the Bank’s Debt Capital Markets Africa team has raised over P7.4 Billion in Botswana since 2003, which shows the Bank’s strength in placing Debt Capital Market issues in Botswana.
Some of the successful mandates carried out by the team have been for Botswana Housing Corporation, The Republic of Botswana, Botswana Development Corporation, Cash Bazaar Holdings and Furnmart Limited.