CHAMWE KAIRA
Letshego Holdings Namibia (LHN) has issued a N$260 million three-year bond under its N$2 billion approved Domestic Medium Term Note Programme on the Namibian Stock Exchange (NSX).
This is the first social note to be issued and listed on the NSX. Total bids to the value of N$322 million were received from five bidders. The bond’s maturity date is 17 May 2027.
Letshego said the bond is a senior unsecured social note. An unsecured note is a corporate debt that does not have collateral attached and is, therefore, a riskier prospect for an investor.
“The NSX has granted LHN the listing of its LHNS01 three-year senior unsecured social note in terms of its N$2 billion Domestic Medium Term Note Programme dated 4 May 2021 as guaranteed by Letshego Micro Financial Services Namibia (Pty) Ltd (LMFSN),” the company said.
Letshego Holdings local based borrowing increased to N$3,1 billion in the year ended 31 December 2023 as the company undertook to finance growth and decrease reliance on parent funding.
The company been progressively implementing its digitalisation strategy in line with our ambition to grow market share.
Further, customer deposit mobilisation continued in 2023 with growth from N$536 million at the end of 2022 to N$828 million at the end of 2023.
The group remains optimistic about early signs of economic recovery in the domestic economy and continues to be well aligned to grow its franchise through the diversification of its target segments in the market.
A dividend of 36.38 cents per ordinary share has been declared since the end of the reporting period.
Total revenue increased by 14% (2022: 17%), which was largely driven by the increase in the repo rate and strong growth in insurance income.
Profit after tax amounted to N$353.3 million (2022: N$350.4 million), an increase of 1% (2022: 16% Increase.)
The bank remains well capitalized with a capital adequacy ratio of 35% (2022: 34%).
The revenue surge was propelled by growth in interest income, which rose by 18%, and robust expansion in insurance income to N$ 275 million (2022: N$ 248 million).
The company said access to Letshego’s expanding suite of LetsGo Insurance products was facilitated through an augmented Digital Mall product portfolio. The Group maintained strong asset quality, with a Loan Loss Ratio (LLR) of 0.25% for the year.
