Untu Capital’s first mobile retail bond oversubscribed

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BH24 Reporter
HARARE – Untu Capital, which last year issued Zimbabwe’s first mobile retail bond, says the bond issuance aimed at raising $1 million has been oversubscribed by 72, 5 percent. mThis means Untu received subscriptions totaling $1, 725 million.

The bond, dubbed U-gain allowed Zimbabweans to lend money to Untu by buying this bond using their mobile phones. And in this respect Untu partnered with Telecash and Ecocash. U-gain notes, which have a 12 month tenure and interest rate of 9 percent per annum, opened for subscription on December 4 last year and closed on Friday last week.

Announcing the results of the offer in a statement today, Untu Capital company secretary Mr Marko Mahuni said the note issuance was a tremendous success.

“The notes are scheduled to be listed on the fixed income board of the Financial Securities Exchange (Finsec) on 29 January, 2018,” he said.

The bond matures on January 28, 2019 and fixed interest payment dates have been set for July 28, 2018 and January 28, 2019. An oversubscribed security offering often occurs when the demand for an initial public offering (IPO) of securities exceeds the total number of shares issued by the underlying company He added that refunds are due to be transferred to subscriber accounts by Tuesday.

“As a result of the oversubscription, the directors have resolved to allot the Notes as follows: The first $5 000 allotted in full plus 56, 74 percent of remaining balance applied for.

“Refunds will be transferred into the bank accounts of the subcribers through Real Time Gross Settlement (RTGS) on or about 30 January 2018,” said Mahuni.

At issuance, Untu Capital said monies that would be raised would be  used to fund its operations as well as for on-lending to productive  sectors of the economy.

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