Letshego Holdings Namibia says proceeds from its recently listed N$260 million social bond on the Namibian Stock Exchange (NSX) will support the bank’s strategy to increase access, reach, and affordability of productive financial solutions for more Namibians.
According to the bank, this includes support for underserved individuals, micro and small entrepreneurs, and small business owners, with inclusive products like affordable housing, healthcare, and education.
“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 prior to listing,” said Letshego Namibia’s Country Chief Executive, Dr. Ester Kali.
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. Sustainability and ESG remain integral components 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,” Letshego Africa Holding’s Group Chief Executive, Aupa Monyatsi, said.
Philip Chapman, Chief Executive Officer for RMB Namibia, which acted as Letshego Namibia’s arranger, dealer, NSX debt sponsor, sustainability advisor, and coordinator, said, “Private sector players are increasingly coming to the fore in solving development challenges. Noting Namibia’s socio-economic challenges, RMB used its wealth of expertise in Sustainable Finance to structure a robust Social Financing Framework (SFF) to ensure the utmost social impact in the deal. We navigated the various complexities coupled with our debt capital markets capabilities to introduce Letshego Namibia’s first-to-market social bond.”
Letshego Namibia is a subsidiary of the proudly African multinational organization, Letshego Africa Holdings Limited, listed in Namibia and focused on delivering inclusive finance solutions to the low and middle-income segments, as well as micro-small enterprises (MSMEs).
Since its IPO in 2017, the Namibian subsidiary has invested in and leveraged the local capital market with various medium-term note programs, diversifying its funding sources and benefiting from local currency funding.
