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Micro-finance firm raises $5 million capital

25 Jun, 2018 - 00:06 0 Views
Micro-finance firm raises $5 million capital

The Herald

Business Reporter
Micro-financE firm Untu Capital, has raised its targeted $5 million in an issuance of tradable bonds after successfully issuing the third and final tranche of $2 million on the Financial Securities Exchange (Finsec). Bonds are a debt instrument offered to the market to raise capital. Initially, Untu Capital raised $1 million from the first issue of the notes and $2 million from the second tranche.

Issuance of the third tranche closed on June 8, and the notes were listed on the Fixed Income Board of the Finsec on June 11, 2018.

“The Untu Capital Limited Note Issuance for Tranche 3 . . . opened on May 7, 2018, and closed on June 8, 2018. This notes issuance is for $2 million with a tenure of 36 months and a fixed interest of 10 percent per annum.

“We are pleased to announce that the notes issuance was a success and the company raised the targeted amount with the issuance being fully subscribed,” said Untu company secretary Marko Mahuni in a notice.

The floating the mobile bonds on Finsec are largely aimed at enhancing the capacities of the country’s small and medium enterprises (SMEs).

Earlier this year, Untu Capital partnered Telecash and EcoCash to allow the public to access the tradable bonds through the mobile platform.

The bonds (popularly known as “U-Gain”) can be accessed for $50 by subscribers. The maturity date of the notes is June 10, 2021.

“The listing date (June 11, 2018) is also the interest commencement date. The fixed interest payment dates are 10 December 2018, 10 June 2019, 10 December 2019, 10 June 2020, 10 December 2020 and 10 June 2021, respectively,” added Mr Mahuni.

Typically, capital markets investments cover a wide range of products, but in Zimbabwe the market is not that well developed and is dominated by shares trading on the Zimbabwe Stock Exchange.

Introduction of the Finsec was meant to broaden the local capital markets.

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