Letshego bank said on Wednesday, November 27, that it had concluded a private bond issue on November 19, in the amount of 384.6 million meticals, with a maturity of four years and a fixed rate of 18.50%.
According to the financial institution’s statement, the issue was organised exclusively by the bank BiG Moçambique and subscribed by national investors from various categories, including insurance companies, banks, pension funds and private investors.
‘This issue reinforces Letshego’s commitment to diversifying its sources of financing, as well as consolidating its presence in the national capital market. For the bank, recourse to financing through this market is an essential component of its evolution strategy and the management of its sources of financing, which include, alongside the bond loans issued on the Mozambique Stock Exchange (BVM), shareholder capital, customer deposits and financing from local counterparties,’ reads the document, which emphasises that since 2023, including this issue, the bank has issued four bonds, raising a total of 1.7 billion meticals, thus consolidating its position as one of the main issuers of corporate bonds in the country.
Founded in 2011, Letshego bank is a subsidiary of Letshego Holdings Limited and its main activity is granting short and medium term loans, essentially to public and private sector employees, and more recently to micro and small companies.
‘Letshego currently has a customer base of around 111,000 and a loan portfolio of approximately 13.3 billion meticals, of which around 70 per cent is earmarked for productive purposes, namely financing small businesses, buying property, financing education, health expenses, etc. The bank serves its customers through a network of 13 branches, 171 employees and a presence in all the country’s provinces,’ the document explains.
As of October this year, Letshego had equity totalling 5.7 billion meticals. In the same period, the loan portfolio grew by 10.4 per cent year-on-year, with Banking Income and Net Income totalling 2.2 billion meticals and 840 million meticals, respectively.
