GetBucks seeks P500m to expand operations
Isaac Pinielo | Wednesday January 11, 2017 18:00
The company, which embraces technology as a means to provide financial products and services to customers, recently stated that it intends to raise between P100 million and P200 million as a first tranche of the note.
“The Botswana Stock Exchange (BSE) has approved the programme memorandum for the note and it is anticipated that the note will be listed on the BSE on January 30, 2017,” the company said in a statement.
GetBucks said it intends to issue the notes in order to re-finance the existing financing facilities. It thereby will reduce the cost of funding as well as re-finance the existing financing facilities.
“The issuer will use proceeds from the first tranche of the note to reduce the cost of funding, to decrease the exposure to foreign exchange fluctuations and expand its current service and product offering,” it stated.
In addition, the company said it seeks to access local funding to limit currency exposure risk, noting that pula-denominated facilities backed by dollar inter-company loans, held as offshore deposits with Botswana banks, have had a significant negative impact on the profitability of GetBucks Botswana due to the depreciation of the pula.
With the issuance of the notes, GetBucks will be able to expand its ongoing normal operations, which will be primarily used to expand its loan book, which will see it introducing new products such as educational, small and medium-sized enterprise (SME) loans as well as offer longer terms on the current product offering with a maximum term of up to 60 months.
GetBucks Botswana, a subsidiary of MyBucks SA Luxemburg, consists of three operating entities; GetBucks, TU Loans and CashCorp.
GetBucks Botswana is a fintech company that embraces technology as a means to provide financial products and services to customers.
GetBucks Botswana and TU Loans provide term loans for a period of six to 60 months and CashCorp Limited provides short-term credit of one-month loans.
GetBucks Botswana also provides funeral and legal cover through its insurance agency in Botswana.