Untu seeks prescribed asset status for $2mln medium-term note

Untu seeks prescribed asset status for $2mln medium-term note

HARARE, December 13 (The Source) – Microfinancier Untu Capital says it plans to seek prescribed asset status for its $2 million medium-term note in a bid to attract institutional investors.

Last month, the financier said it will issue medium-term notes of up to $5 million on the alternative trading platform (ATP), Finsec.

Finance director Marko Mahuni said they were raising capital through the note mainly to support small to medium enterprises (SMEs).

The note will be in three tranches which comprise of a 12 month tranche which attracts 9 percent per annum interest while the 24 month and 36 month tranches will pay an interest rate of 9,5 percent and 10 percent per annum respectively.

Mahuni told The Source that the company wanted a prescribed asset status on the 36-month note.

“We are hoping to get a prescribed asset status for the 36 months tranche, which is for $2 million. We want institutional investors and asset managers to participate on that note, but still we have quite a number of other interested investors who can as well participate even if we fail to get the prescribed asset status for this tranche,” Mahuni said.

Mahuni said the offer for the 12 month tranche, which opened on December 4, is now live on Telecash mobile platform and will be on Ecocash platform in the coming few days.

Untu Capital is also the first company in Zimbabwe to unveil the first mobile based retail note in Zimbabwe, after receiving regulatory approval from the Securities and Exchange Commission (SEC).