RMB Namibia is proud to announce its partnership in the issuing of Letshego Holdings Namibia Ltds (“LHN”) very first social bond in the country.
LHN received total bids to the value of N$322 million and successfully issued N$260 million three-year senior unsecured notes across five investors. This landmark transaction marks the first social bond for a corporate to be issued in the Namibian market and to be listed on the Namibian Stock Exchange (“NSX”).
Additionally, this issuance was raised off the back of LHN’s social financing framework ("SFF"), which RMB supported to develop in its capacity as sustainability advisor. The SFF received external verification with a Second Party Opinion.
Leveraging RMB’s knowledge and expertise within the Debt Capital and Sustainable Finance markets played a pivotal role in supporting LHN’s inaugural social bond issuance in the Namibian market.
“A social bond listing evidences our commercial purpose to improve lives, while leveraging the opportunity to access a rapidly increasing pool of social financing, globally. Social bonds not only introduce Letshego Namibia to an expanded pool of social investors, but also deepens stakeholder confidence in our credentials given industry and listing regulations requiring independent evaluations and approvals of our Social Financing Framework prior to listing,” states Letshego Namibia’s Country Chief Executive, Dr Ester Kali.
Social bond issuances, by their very nature and intent, need to be guided by local market nuances and anchored by finance-related regulations, and specifically needs to recognise the importance of access to finance in-country. In an economy like Namibia where income inequalities persist and access to finance remains limited, facilitating financial access becomes a crucial enabler in socio-economic growth.
“Achieving tangible social and sustainable impact from our pan-African inclusive financing products and solutions has been intrinsic to Letshego’s 25-year legacy in Africa, having first opened our doors in Gaborone, Botswana in 1998. Sustainability and environmental, social and governance (“ESG”) remain integral proponents across our geographies and business divisions, and core to our inclusive culture and how we do business. Namibia’s social bond leads the way for other subsidiaries to access the growing pool of social capital and financing vehicles, for the benefit of our strategy, and ultimately our customers, partners, and communities,” adds Aupa Monyatsi, Letshego Africa Holding’s Group Chief Executive.
The proceeds from this bond, which has been structured in alignment with the International Capital Market Association’s Social Bond Principles, will be entirely dedicated to financing LHN’s broader social objectives such as financial inclusion. More precisely, the proceeds of this social bond will be used to fund eligible categories as prescribed in the SFF, such as providing access to finance to low-income individuals, Micro, Small and Medium scale Enterprises (“MSME’s”), agribusiness and women in business, affordable housing healthcare and education.
“Private sector players are increasingly coming to the fort of solving development challenges. Noting Namibia’s socio-economic challenges, RMB used its wealth of expertise in Sustainable Finance to have a well-defined target population to ensure the utmost social impact in the deal. We navigated the various complexities coupled with our DCM capabilities to introduce this first-to-market solution,” states Philip Chapman, Chief Executive Officer CEO at RMB Namibia.
RMB, is a recognized leader in bringing social and green bonds to Namibia, and acted as the arranger, dealer, NSX debt sponsor, sustainability advisor and coordinator for LHN’s inaugural social bond issuance, under its NSX-listed N$2 billion Domestic Medium-Term Note Programme. This instrument represents a first-to-market initiative that contributes to diversifying available innovative financial instruments.
