GetBucks to list $30m debt security facility

Golden Sibanda Senior Business Reporter
Getbucks Zimbabwe will list a $30 million debt security, Medium Term Note, on the Zimbabwe Stock Exchange before end of this month to raise funding to support small businesses and provide mortgage loans.

The fintech company said the first tranche of $5,4 million raised from the $30 million medium term note programme the group is in the process of establishing will be listed on or about April 26, 2017.

Mercy Muchando, managing director of GetBucks Zimbabwe, said that the successful placement illustrates the bondholders’ optimism in the bank’s strategic direction.

A medium-term note is a debt note that usually matures (is paid back) in 5–10 years, but the term may be less than one year or as long as 100 years. They can be issued on a fixed or floating coupon basis.

The group says that proceeds from this Note Programme will be used to refinance existing short term funding into longer term financing allowing the bank to underwrite longer dated products in line with the thrust to provide positive economic impact.

“In particular, this note will enhance the bank’s ability provide loans to Small to Medium Enterprises (SME’s) and Micro-mortgages to help improve access to housing finance and shelter and advance the drive towards financial inclusion,” said Ms Muchando.

The financial services group said that it had already raised $5,4 million from the first series of the note programme, which the firm said has been used to refinance short term funding and into longer term funding and enables it to underwrite longer dated products.

“The Zimbabwe Stock Exchange has granted the issuer a financial instrument listing and the note will be listed on the ZSE on or about26 April,” GetBucks said.

GetBucks listed its shares on ZSE last year.

Salient features of the note include 11 percent annual interest rate, monthly interest payments, bullet repayment of capital amount at the end of tenure. GetBucks Zimbabwe said the tenure will be 33 months.

GetBucks Zimbabwe, a subsidiary Luxembourg registered MyBucks SA, commenced operations in 2012 as a micro finance institution and the business has grown into one of the largest micro-finance lenders in Zimbabwe.

To date, GetBucks said, it has disbursed in excess of 26 000 loans amounting to approximately $30 million.

The company currently services about 15 000 clients. It has staff compliment of 66 and 14 branches.

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  • scam #1

    sounds like a BIG scam, do not get sucked into this thing!!!!!!!

  • beware !!!

    People out there, watch out! Please don’t invest in this, you will lose big time!!

    • deee

      What do you know about investing? dont just speak for the sake of speaking. This is a noble cause.