Botswana Savings Bank (BSB) has raised P192 million through the recent private placement of four bonds, with the funds due to help its growth and target of boosting its loan book by 30%.
The bonds, which were privately placed with investors, are part of the BSB’s P1 billion note issuance programme announced last March.
According to a series of announcements made on the Botswana Stock Exchange, the BSB raised P82 million, P60 million, P30 million and P20.5 million in different maturing bonds carrying both fixed and floating rates.
The bonds’ maturities range between December 2023 and January 2028.
In a previous announcement, the BSB said the fundraising was part of the implementation of the business strategy, and played a critical role in achieving the ambitious goal of growing its loan book by close to 30%.
The bond proceeds are also needed to execute the Gemvas funding mandate which has long dated instruments of up to 20 years and hence the requirement to seek funding that matches the funding profile.
Gemvas, or the Government Employees Motor Vehicle and Residential Property Advance Scheme, provides participating lenders with partial guarantees on loans granted to civil servants.