BSE handholds GCC towards historic municipal bond B2

For years, the BSE and its partners in the Botswana Bond Market Association advocated for the use of municipal bonds as a viable infrastructure development financing mechanism. Municipal bonds, as used all over the world, are debt instruments that local authorities issue to secure financing for infrastructure and related developments.

Corporates and citizens invest in the bonds thus lending to the local authorities and in many cases, their interest return is made non-taxable or given other types of preferential exemptions. Local authorities tie their bonds with either their revenue or the returns from the projects being developed.