Letshego makes history with first social bond Listing on NSX
Letshego Holdings Namibia, a subsidiary of the pan-African inclusive finance entity with a footprint in 11 African markets, has achieved a significant milestone by listing the Africa Group’s first social bond on the Namibian Stock Exchange (NSX).
This groundbreaking listing garnered total bids amounting to N$322 million, with N$260 million successfully issued in three-year senior unsecured notes across five investors.
Since its Initial Public Offering (IPO) under the banner ‘Ekwafo Letu’ in 2017, Letshego has been actively investing in and leveraging the local capital market through various medium-term note programs. This strategic approach has diversified funding sources while benefiting from local currency funding.
Dr Ester Kali, Country Chief Executive of Letshego Namibia, hailed the social bond listing as a testament to the company’s commitment to improving lives.
“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. Social bonds not only introduce Letshego Namibia to an expanded pool of social investors but also deepen stakeholder confidence in our credentials given industry and listing regulations’ require independent evaluations and approvals of our Social Financing Framework before listing,” she said.
Aupa Monyatsi, Group Chief Executive of Letshego Africa Holdings, underscored the organisation’s legacy of achieving tangible social and sustainable impacts across Africa over its 25-year history.
He highlighted the importance of sustainability and Environmental, Social, and Governance (ESG) principles in Letshego’s business operations, with Namibia’s social bond setting the precedent for other subsidiaries to tap into social capital and financing opportunities.
Letshego Namibia’s social bond adheres to the International Capital Market Association’s Social Bond Principles and will support the company’s strategy to enhance access, reach, and affordability of financial solutions for Namibians. This includes inclusive products such as Affordable Housing, Healthcare, and Education for underserved individuals, Micro and Small entrepreneurs, and small business owners.
RMB, renowned for its expertise in Sustainable Finance, played a pivotal role as Letshego Namibia’s arranger, dealer, NSX debt sponsor, sustainability advisor, and coordinator. Philip Chapman, RMB Chief Executive, emphasized the private sector’s increasing role in addressing development challenges and highlighted RMB’s commitment to structuring a robust Social Finance Framework to maximize social impact.
Letshego Namibia, a subsidiary of Letshego Africa Holdings Limited, remains dedicated to delivering inclusive finance solutions to low and middle-income segments, as well as micro-small enterprises.
Recognized as the Best Locally Listed Company at the 2023 Namibia Top Company Awards, Letshego Namibia continues to leverage innovation and technology to uplift individuals with limited access to traditional financial services.
