Verdant Capital Completes a Debt Financing of approx. BWP 256 million (USD 25.6 million) for Letshego
Verdant Capital has raised approx. BWP 256 million (approx. USD 25.6 million) for Letshego from leading European specialist and impact investors. The funding will be used to support a variety of the Group’s growth ambitions including: the expansion of its loan book in selected markets of operation; additional investment into the Group systems and financial solutions technology; as well as embedding existing and new strategic partnerships to expand the Group’s customer base.
The funding programme brings treasury benefits and mitigate the funding risk for the Letshego Group by geographically diversifying its funding base, increasing the current number of investors, securing longer tenors as well as reducing the Group’s overall open FX exposure by drawing new local currency-denominated facilities which will be available in Botswana Pula, Kenyan Shillings, Tanzanian Shillings and Nigerian Naira after standard FX hedging operations – some of the key currencies in which Letshego operates across the region.
“As Letshego progresses in its sustainable growth strategy, with marked in-roads in increasing inclusive finance through digital innovation, we now see a noteworthy increase in interest and support from new investors and funders. These are financial partners who share our ambition in delivering a commercial strategy which supports long term economic value for Africa’s under-served communities.”, said Chris Low, Group Managing Director of Letshego.
Letshego incorporated in 1998, is a leading pan-African inclusive financial institution operating in eleven African markets spanning Southern, Eastern and Western African and focuses on delivering inclusive finance solutions to underserved populations. Letshego is listed on the Botswana Stock Exchange with a market cap of nearly USD 400 million. As of December 2017, Letshego Group has total assets and a loan book of BWP 9.0 Bn (approx. USD 875 M) and BWP 7.8 Bn (approx. USD 760 M) respectively. In April 2018, Moody’s gave Letshego a credit rating of Ba3 with a stable outlook.
Verdant Capital, a specialist African investment bank, acted as sole financial advisor and sole arranger to Letshego. Further funding from the same programme is expected to be drawn in the coming months.
Article appeared in MicroCapital Africa, Deals, Thursday, 24 May, 2018, read it here.