Letshego readies first issuance in P2bn programme
Mbongeni Mguni | Friday July 18, 2025 15:23
Whilst the company’s parent group, Letshego Africa Holdings, is a regular participant in the capital market, the upcoming issuance will be the first by Letshego Botswana, the group’s home base and one of its most profitable units.
Letshego Botswana head of brand, marketing and customer experience, Kealeboga Sebolai told BusinessWeek the first issuance from the new programme was due this quarter, with the quantum “to be optimally determined with our partners based on market sounding to be undertaken”.
“The proceeds from the P2bn medium term programme will be specifically allocated for use in Botswana and will not be available for use across Letshego's broader African footprint,” he said in response to emailed enquiries. “Proceeds from the note programme will support the growth of personal loans, digital loans via mobile platforms, affordable housing loans, and purchase order financing and micro-insurance solutions tailored for micro and small entrepreneurs as Letshego expands its customer offerings in order to be more relevant to a wider base of Batswana.”
The local unit’s fundraising comes amidst a liquidity crunch in the local capital market caused by lower government spending associated with the prolonged diamond slump. Sebolai said Letshego Botswana was confident of attracting investor interest for the issuance.
“We are confident in our business strategy and the strong balance sheet position Letshego Botswana holds in the local market,” he said. “As a trusted brand with a proven track record of delivering value to our customers and stakeholders, we believe our debut issuance under the P2bn medium term programme will resonate with investors. “Letshego's strong fundamentals, consistent performance, and strategic growth initiatives position us well to attract investor interest and successfully execute this issuance. “Investors are looking for new offerings and Letshego is well positioned to provide this.”
Sebolai told BusinessWeek that similarly, the microlender did not expect that its issuance would be inordinately priced by the market. As the liquidity crisis has stretched in the local capital market, rates have been rising such as on government bonds as well as deposits and loans.
“We believe that our credibility as a trusted financial institution will enable us to navigate these conditions effectively. “We will approach the market with a focus on the long-term interests of our investors and Letshego Botswana's financial strategy,” he said.
Letshego Botswana had the group’s second largest loan book as at December 2024, being valued at just over P3 billion, behind Namibia at nearly P4 billion. The local unit was Letshego Africa Holdings’ third most profitable for the year to December 2024, out of the 11-country group.