HARARE, August 1 (The Source) – Deposit taking microﬁnance institution, GetBucks says its $15 million Medium Term Note will now be placed privately by way of a tap issue following slow uptake of the initial offer which opened in May.
A tap issue is a procedure that allows borrowers to sell bonds or other short-term debt securities from past issues at the current market price. This presents several advantages which include rapid execution, since no new prospectus is needed, lower arrangement and legal costs.
Getbucks said in a notice on Tuesday that the subscription of its note, which was supposed to close on June 16 but was extended to July 21 after obtaining a credit rating and prescribed asset status, was below the minimum threshold required for listing on the Zimbabwe Stock Exchange.
The note would be the second under a $30 million capital raise initiative. In April, Getbucks managed to issue a $5,4 million debt security which was fully subscribed.
“The uptake is slow and is yet to meet the regulatory threshold to bring the securities to listing. The Notes will now be placed privately by way of a tap issue. This second series of the programme will be listed by introduction on the Zimbabwe Stock Exchange after the threshold has been achieved,” said company secretary Paul Soko.
GetBucks was licenced by the Reserve Bank of Zimbabwe to operate as a deposit taking microfinance institution in 2015, and subsequently listed on the Zimbabwe Stock Exchange in January last year.