Micro finance lender Izwe Loans has issued a K265 million medium term note programme on the Lusaka Stock Exchange to fund its fast growing business in Zambia.
Izwe Loans which becomes the first micro lender in Zambia to use the stock exchange to raise capital hopes to use the funds to extend loans to people who have no collateral.
Under the programme, flexible terms, rate structure, secured and unsecured notes will be offered to the investing public.
A medium term note programme is a bond that facilitates a company’s raising of money as and when it requires it.
Izwe has already issued three kwacha based bonds of K 20 million each out of the K 265 million and they have also issued a US$10 million at an interest rate of 13 percent.
The Lusaka Stock Exchange and the Securities and Exchange Commission has given their approval to Izwe loans for the note programme which has been sponsored by African Alliance Securities Zambia Limited.
LuSE Chief Executive Officer Brian Tembo who spoke on the sidelines of the listing event said the listing is a major milestone in the growth of Izwe loans and the development of the bond market on the LuSE.
“By coming the LuSE, Izwe will not only have access to the capital it needs for growth but it also provides investors with an alternative to what is currently offered in the fixed income market here in Zambia,” Mr Tembo said.
At the listing ceremony in Lusaka on Thursday, Secretary to the Treasury Fredson Yamba said Izwe’s listing is another sign of investor confidence in the Zambian economy.
“I do recall that we last gathered here in the last quarter of 2013 when we launched a domestic bond issuance by the International Finance Corporation. I am glad to be back to commemorate the listing of yet another bond, a sign that we are seeing confidence and growth in our domestic bond market,” Mr Yamba said.
Mr Yamba said the listing is also an indication that local companies are beginning to view the LuSE as a real and effective platform for raising of relatively cheaper longer term capital.
Smart people use other people’s money to make their money
So any one can list pa zed ,even ba kabwalala.pitful!
Unlike Bayport who steal their customers’ money in broad day light
People should learn to be transparent and speak honestly about how a bond works. Small companies like these have come and gone.
Bayport should be commended for making the micro finance industry what it is today.
That is very good. Hope the greedy banks will be taught a lesson as many honest people will get loans from izwe. We need more izwes in Zambia to hel the poor.
This is how life is supposed to be..THOUGH would have loved them to tap into the order finance, invoice discounting and other incentives which are helpful to the smes. We are tired of banks terms and conditions apply nosence. was jst from blasting my bank manager who refused to help on the order finance and yet I had an order from a reputable organization. they are so rigid and yet they went ahead to give unsecured loans to individuals who haven’t paid coz they came to know they are insured loans. GOOD MOVE IGWEEEEE….OR SORRY IZWEE
OMG….is how much we have become politicians. a story like this with 6 comments only. We need to do a lot of reading. if this story is a measure for our knowledge in business then we have a big problem in the country
The last i ask izwe for a loan..they told me they only offer loans to civil servants or govtmt workers not in private institutions.is the situation still same? or they have now changed?
Izwe has done a good thing.By the way,whats the price for the listed shares and whats the minimum number of shares is one supposed to buy to become a share holder?