The Botswana Housing Corporation (BHC) will pay back about P286 million it borrowed from the bond market in 2010.
On December 10, 2017, BHC says it will redeem an unsecured note BHC017, which is listed on the Botswana Stock Exchange (BSE).
The bond is part of a P2 billion note by the BHC, which the parastatal taps into to raise funding for its operations.
Having gone for 12 years without a rental increase, the BHC raises funds for new projects through property disposals as well as borrowing on the capital markets.
“The Botswana Housing Corporation will redeem the BHC017 Unsecured Notes, having an aggregate nominal amount of P286, 000,000 and maturing on 10 December 2017.
“The Issuer hereby notifies the noteholders of the redemption at maturity, as specified in the pricing supplement and payment will be done ten days after surrendering of noteholder certificates,” the BHC said in a notice.
The parastatal says the notes will also be delisted from the BSE as of December 10, 2017.
BHC also has
Despite the high costs of maintenance of old properties as funding for new projects; BHC has been recording surpluses for the last five years, though at a declining rate.
In the 2016 annual report, BHC said it was engaging several stakeholders in order to collaborate and share costs of infrastructure; in particular the utility services providers.
The corporation said it was also engaging government, as their shareholder, to allocate them developed land.
“The provision of serviced land will benefit the nation as houses will be sold at affordable prices.
The cost of servicing the land accounts for almost 35% of the building costs of BHC properties,” says the BHC.
The stagnant rental income for the past 12 years and increasing repairs and maintenance costs has significantly contributed to the parastatal’s declining profitability.