BHC taps P2bn bond to fund developments
Pauline Dikuelo | Monday July 25, 2022 06:00
The corporation plans to construct 336 units at Block 7 flats, 100 units in Maun, 212 units in Kazungula, 13 units in Phakalane, 84 units in Letlhakane, 96 in government camp in Francistown, and 30 units in Nata.
Presenting the company’s financial results for the year ended March 31 last week, BHC acting CEO, Pascaline Sefawe, said the latest round of fundraising will be done in the fourth quarter of the year.
“We need P200 million but the figure could be less or more depending on the rentals (revenues),” she told a media briefing.
The upcoming bond will be part of the BHC’s P2 billion note programme under which the parastatal raises funding for its capital projects. To date, more than P700 million has been raised through the issuance of bonds under the programme.
“Our focus is on the low-middle income segment of the market in terms of housing,” Sefawe said. “We will be partnering with the private sector as a way of promoting citizen economic empowerment.”
According to Sefawe, there is an appetite for house ownership amongst citizens noting that the BHC’s Tsholofelo units were awarded 100% to citizens of which 70% were youths below the age of 35.
“Tsholofelo was more like an experimental lab and we have learnt some lessons. “We will be considering these lessons as we embark on unbundling more projects to give the youth the opportunities,” she said.
Meanwhile, the BHC’s pretax profits for the year to March 2022 increased significantly from P2 million in the prior year to P72 million. This resulted in an overall increase in surplus after tax from P1 million in the prior year to P64 million for the year under review.
Sefawe said the growth in the surplus was driven mainly by rental revenues that increased by 15% from P209 million to P240 million as well as a reduction in expenses from P272 million to P214 million on the back of cost containment.
“Sales of high margin investment properties also contributed significantly to the growth in surplus as well as impairment reversals on receivables amounting to P25 million,” she said.
The corporation’s strength is in its investment properties portfolio which stood at P1.4 billion at the end of reporting period, according to Sefawe.
“The corporation continues its strategy to diversify revenue streams despite both facilities management income and professional fees being challenged by the prevailing economic conditions that have seen our major clients curtailing spending,” she said.