Business
Platinum Credit lists notes on USE after raising sh30b
Paul Bwiso, chief executive, USE, said the outcome demonstrated that domestic capital is ready for well-structured opportunities.
Abaasa (fourth from left) joined by officials from Platinum Credit and USE management ring the bell during the official listing event at USE.
By: Ali Twaha, Journalist @New Vision
KAMPALA - Platinum Credit has listed its medium-term notes on the Uganda Securities Exchange (USE) fixed income market segment after raising sh30b in the first tranche of its programme.
The microfinance lender sought a base of sh20b under the tranche, which carried a greenshoe option of sh10b. A greenshoe is an advance agreement that lets a company accept more money.
Investors applied for about sh49.28b, a subscription rate of 246.4%. The company exercised the full greenshoe and accepted sh30b across three, five and eight-year notes.
The notes were issued on September 30, with fixed coupons of 16.5%, 17.4% and 19% respectively, with interest paid quarterly. They were admitted to listing on October 5.
Dyer & Blair Uganda acted as arranger, sponsoring broker and placing agent.
Speaking during the formal bell ringing ceremony, Albert Abaasa, managing director, Platinum Credit, said the proceeds would support expanded lending to customers, foreign exchange management, repayment of some foreign-denominated debt, and the design of additional loan products that are easier for borrowers to repay.
Dyer & Blair Uganda acted as arranger, sponsoring broker and placing agent.
Speaking during the formal bell ringing ceremony, Albert Abaasa, managing director, Platinum Credit, said the proceeds would support expanded lending to customers, foreign exchange management, repayment of some foreign-denominated debt, and the design of additional loan products that are easier for borrowers to repay.
Bwiso delivering his remarks
Paul Bwiso, chief executive, USE, said the outcome demonstrated that domestic capital is ready for well-structured opportunities.
“Platinum Credit went to the market looking for sh20b. Initial subscribers submitted bids totalling sh49b. This represents a subscription level of 246%, reflecting strong demand for the tranche.”
This is the first issuance under a sh70b medium-term note programme that includes a further greenshoe option of sh30b. A medium-term note programme allows a company to borrow in stages across different maturities, subject to demand and regulatory approval, rather than raising all funds at once.
Denis Kizito, director, market supervision at the Capital Markets Authority, noted that strong subscription is not a substitute for ongoing accountability.
He said the lasting significance of the transaction would depend on the issuer fulfilling its use of proceeds commitments and meeting continuing disclosure obligations after the listing.
“Platinum Credit went to the market looking for sh20b. Initial subscribers submitted bids totalling sh49b. This represents a subscription level of 246%, reflecting strong demand for the tranche.”
This is the first issuance under a sh70b medium-term note programme that includes a further greenshoe option of sh30b. A medium-term note programme allows a company to borrow in stages across different maturities, subject to demand and regulatory approval, rather than raising all funds at once.
Denis Kizito, director, market supervision at the Capital Markets Authority, noted that strong subscription is not a substitute for ongoing accountability.
He said the lasting significance of the transaction would depend on the issuer fulfilling its use of proceeds commitments and meeting continuing disclosure obligations after the listing.