GetBucks raises $5m from bond issue

By Enacy Mapakame

Financial services group, GetBucks raised $5 million in its debut bond issue this week, the first such listing on the Zimbabwe Stock Exchange in two decades.

A bond is a debt obligation that allows companies or Government to raise capital at a fixed interest rate.

The GetBucks bond listed on Wednesday becoming the first to trade publicly in Zimbabwe, two decades after the bond market stopped operating. Investors have already put up orders exceeding the debt on offer (5,4 million), which is the first in a phased $30 million capital raise.

GetBucks managing director Mrs Mercy Murevesi told The Herald Business the bond has a three year tenure and a yield of 11 percent.

“We will be releasing this in tranches because we do not want to have money lying idle,” said Mrs Murevesi by telephone.

“We are now working on the second tranche that we will release in due course, but the whole $30 million will be released in 18 months’ time,” she said.

The listing of the GetBucks bond is the first of such on the ZSE following the listing of debt securities on the local bourse was approved by the regulator, the Securities Exchange Commission last year.

Mrs Murevesi added the financial institution resorted to using this route to raise capital to support the budding small to medium enterprises.

“SMEs are contributing a lot to the economy and while we want to grow our business, we also want to assist them in their business to boost the economy,” she said.

Meanwhile, the ZSE’s mainstream Industrial Index gained 0,76 percent yesterday to 142.91 on firming demand in heavies.

Sugar cane producer, Hippo headlined risers after adding 4,55 percent to 46 cents followed by diversified industrial conglomerate Innscor which rose by 3,64 percent to 46,95 cents.

Other notable gains were recorded in Padenga and Simbisa which rose 3,63 percent to 20 cents and 0,57 percent to 17,75 cents respectively.

Insurance concern, FML and ZB completed the top five risers set after adding 3,55 percent and 2,76 percent to 7 cents and 13,05 cents apiece.

NMBZ was the only lame duck after dropping a 2,94 percent to 3,30 cents.

The mining index was flat at 66,33 as all the four mining counters were unchanged at previous trading levels. The Chronicle