Zimbabwe: GetBucks Extends Offer

Jun 2017
Zimbabwe, June, 20 2017 - Microfinance institution GetBucks has extended its offer to the public to subscribe to the second series of its $30 million medium-term note programme to next month. The offer, which will see the deposit-taking institution raising $30 million through a bond was supposed to close last Friday but had its closing deadline pushed to July 21, with the firm attributing this to a recent credit upgrade.

Following Global Credit Ratings’ (“GCR”) recent assignment of national scale ratings to GetBucks of BB and B in the long-term and short-term respectively; with the outlook accorded as Positive, the firm pushed its offer deadline.

“This has been necessitated by two material changes; the issuer obtained a credit rating on June 7, and obtained prescribed asset status for the issue on June 12.

“To allow investors an opportunity to participate in this issue, the offer period extension was necessary,” GetBucks said in a statement.

The new ratings — valid until May 2018 — will see the microfinance institution release the offer results on ZSE news services on July 26.

The three-year note which attracts an interest of 10,25 percent per annum will then be issued on July 28, with the listing of notes and trading commencement beginning on the same day.

GCR said the initial ratings assigned to GetBucks reflected its “nascent deposit-taking microfinance business, limited trading history, and very strong capitalisation, within the context of a highly challenging operating environment.”

“GCR views the company’s capital metrics as very strong. GetBucks Zimbabwe had a total risk-weighted capital adequacy ratio (“RWCAR”) of 51,1 percent at FY16, and a Tier 1 RWCAR of 47,6 percent (well above the 12 percent regulatory minimum), which provides a solid buffer against capital attrition given the risk profile of the company.

“GetBucks Zimbabwe’s core capital was $7,8 million at FY16, against a statutory minimum requirement of $5 million,” GCR said.

Meanwhile, the firm earlier stated that it had already raised $5,4 million as part  of the money-raising initiative.

GetBucks is majority owned, 50,3 percent by GetBucks Limited, a holding company domiciled in Mauritius, which is 100 percent owned by MyBucks South Africa.

The remaining shares in GetBucks Zimbabwe are effectively held by Brainworks Capital Management (Private) Limited (31,1 percent), DBF Capital Partners Limited (8,4 percent) and various local pension funds (with a combined shareholding of 10,2 percent).

Established in 2012, the company listed on the Zimbabwe Stock Exchange in 2016.

“GetBucks Zimbabwe’s core capital was $7,8 million at FY16, against a statutory minimum requirement of $5 million,” GCR said.

Source : Daily news

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