Letshego settles BPOPF loan
Lewanika Timothy | Wednesday October 14, 2026 06:00
The repayment closes a funding arrangement designed to give the microlender breathing room whilst management worked on long-term solutions to strengthen the homegrown microlender's books. The settlement, however, comes alongside a fresh appeal to shareholders for capital, showing that the group’s rebuilding effort remains under way.
In an announcement issued on the bourse last week, directors confirmed that the facility and all accrued interest have been repaid as at the maturity date, with a fresh plea to shareholders for funding.
“Following the repayment on September 29, 2026, no principal or interest remains outstanding under the BPOPF facility,” the board stated.
The shareholder circular contemplated bridge funding of up to P483 million. Such financing provides temporary support whilst a company arranges more durable funding or completes changes to its business.
For Letshego, the arrangement came during liquidity pressures linked to Botswana’s diamond downturn, a constrained domestic bond market and delays in receiving funds from subsidiaries. Lower dividend inflows following losses also weakened the cash available to meet obligations.
The pension fund remains central to Letshego’s next funding step. It has agreed to fully underwrite a proposed P800 million rights offer, through which existing shareholders will be invited to buy additional shares.
Unlike the bridge loan, the rights offer would raise equity capital without creating another loan repayment obligation. Letshego intends to use the proceeds mainly to reduce holding-company debt and strengthen its balance sheet.
“The proposed rights issue represents a considered step in strengthening Letshego’s capital base and positioning the group for its next phase,” executives said.
The group is also simplifying its operations through the proposed sale of five businesses in East and West Africa, allowing management to concentrate resources on its retained markets.
Its funding strategy includes reducing dependence on expensive wholesale borrowing and expanding deposit-based funding. These measures aim to improve the durability and cost of its financing.
The repayment comes as Letshego’s earnings improve, although pressure on income and funding costs persists. Group profit after tax rose 25% to P227 million in the six months ended June 2026, supported by lower loan impairment charges and tighter cost control. However, profit from the businesses it intends to retain grew by a more modest five percent, with operations earmarked for sale contributing to the stronger overall result.