eBusiness Weekly
Martin Kadzere
ESW Investment Group (ESW), the investment bank owned by Zimbabwe veteran banker George Manyere, has received an approval from the Eswatini Stock Exchange (ESE), to list an E1 billion (US$67,1 million) domestic medium term note to grow the company’s loan book.
The funds raised will be used to grow the company’s loan book through some of its subsidiary lending operations, including GetBucks Eswatini Proprietary Limited and First Cred Limited in Botswana, the company said.
Manyere founded the bank in 2020 and owns 70 percent shareholding. ESW’s product and services offering, which are largely typical of an investment bank, is delivered through a regulated and licensed environment by the Financial Services Regulatory Authority in the Kingdom of Eswatini.
“We are very excited about the listing of this note programme,” ESW chief executive Mlungisi Lukhele said.
“The lower cost of funding will allow us to reduce the cost of capital, enabling us to deploy the capital in the form of loans to our clients at competitive pricing in the market.
“Our investment prospects remain strong, supported by ongoing demand for funding across our chosen markets and sectors. Valuations in the aftermath of Covid-19 are low, which present significant opportunities for enhanced returns in well secured structures.”
ESW invests in a diverse range of asset classes with a key focus on alternative investments in addition to developing profitable alternative assets that also contribute to private and public sector growth in the southern African Kingdom (Eswatini/Swaziland).
ESW has the expertise to create expansion opportunities throughout the Common Monetary Area. This in turn, is expected to generate substantial revenue streams for all stakeholders.
The company also plans to expand its investments into untapped markets in the region and will further pump resources into its current investment portfolio of growth companies that require additional equity and debt for growth.
The investment portfolio may be expanded through acquisitive growth, the company said.
The notes may be issued as a fixed rate note, a floating rate note, a zero coupon note, an index-linked note, a dual currency note, a mixed rate note or such combination of any of the foregoing or such other type of note as determined by ESW.
The ESE approved this pre-listing statement and granted the listing of the entire medium-term note programme.
The authorised size of the programme will be E1 billion to be drawn down within 24 months of the date of the programme.
ESW intends to issue notes under the programme on the terms and conditions stipulated in the Applicable Pricing Supplement and the general terms and conditions of the notes as set out in the programme memorandum dated January 18, 2021.
In the statement issued by the company, it was clarified that the announcement was not an invitation to the public to subscribe for any of the notes of the issuer, but is issued in compliance with the listings requirements of ESE, for the purpose of giving information to the public with regard to the ESW medium term note programme.
The company was incorporated as a public company on July 16, 2013 under the name Escalator Capital Limited.
On December 12, 2013, the company’s name was changed to Ecsponent Limited and on June 27, 2017 and the issuer’s name was changed to Ecsponent Swaziland Limited.
On March 31, MHMK acquired a controlling stake of the company from its previous major shareholder and renamed it to ESW Investment Group Limited on April 3, 2020 as part of the transformation of its business model.
Last year, MyBucks, a fintech group in which Manyere has an interest in embarked on a major debt restructuring exercise through disposals of stakes in most of its operations in Africa and Europe. The group reduced its consolidated indebtedness through a disposal of GetBucks, Mauritius, holding its Botswana operation and disposal of shares in Mozambique.
MyBucks had also entered into a sale and purchase agreement with Xtenda Financial Holdings Limited, a subsidiary of DBF Capital founded by former BancABC Group executives, Douglas Munatsi, Francis Dzanya and Beki Moyo, for the acquisition of 55 percent stake in MyBucks Zambia in a US$3,3 million transaction and the transaction is still subject to approval by regulatory authorities in that country. In an announcement released by Mybucks Group on January 20, 2021, Mybucks will further dispose of the balance of 45 percent shareholding in Mybucks Zambia to Xtenda for US$2,7 million.
This comes after Dr Rajan Mahtani, an indirect shareholder in MyBucks failed to exercise the call option to acquire the 45 percent stake in MyBucks Zambia by the stipulated deadline for payment of January 14, 2021.
MyBucks also sold MBC Mozambique to Xtenda in a transaction worth US$14 million.
As part of the restructuring process initiated by Mr Manyere through the Mybucks board after he took control in March 2019, MyBucks has also sold stakes in its operations in Spain, Poland, Austria, South Africa, Kenya, Botswana and Uganda.
