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ESW LISTS E1BN DOMESTIC MEDIUM TERM NOTE

By KWANELE DHLADHLA | 2021-01-18

Investment management firm, ESW Investment Group (ESW) has received approval from the Eswatini Stock Exchange (ESE) to list an E1 billion domestic medium term note (DMTN) programme.

The funds raised from issuing notes under the programme will be used to grow the company’s loan book through some of its underlying subsidiary lending operations, including GetBucks Eswatini Proprietary Limited and First Cred Limited in Botswana.

ESW Chief Executive Officer Mlungisi Lukhele, commented: “we are very excited about the listing of this note programme. The lower cost of funding will allow us to reduce the cost of capital, enabling loans to be competitively priced in the market. Our investment prospects remain strong, supported by ongoing demand for funding across our chosen markets and sectors. Valuations in the aftermath of COVID-19 are low, which present significant opportunities for enhanced returns in well secured structures.”

It was explained that ESW invests in a diverse range of asset classes with a key focus on alternative investments in addition to developing profitable alternative assets that also contribute to private and public sector growth in the kingdom.

ESW has the expertise to create expansion opportunities throughout the Common Monetary Area (CMA). This in turn, is expected to generate substantial revenue streams for all stakeholders.

The company further disclosed that it has plans to expand its investment activities into untapped markets in the region and will invest into its current investment portfolio of growth companies that require additional equity and debt for growth.

The investment portfolio may also be expanded through acquisitive growth.

Mixed rate

Notes may be issued as a fixed rate note, a floating rate note, a zero coupon note, an index-linked note, a dual currency note, a mixed rate note or such combination of any of the foregoing or such other type of note as determined by ESW.

The ESE approved this pre-listing statement and granted the listing of the entire medium-term note programme ESW.

The authorised size of the programme will be E1 billion to be drawn down within 24 months of the date of the programme.

ESW intends to issue notes under the programme on the terms and conditions stipulated in the Applicable Pricing Supplement and the general terms and conditions of the notes as set out in the programme memorandum dated January 18, 2021.

In the statement issued by the company, it was clarified that the announcement was not an invitation to the public to subscribe for any of the notes of the issuer, but is issued in compliance with the listings requirements of ESE, for the purpose of giving information to the public with regard to the ESW medium term note programme.

ESW Investment Group Limited is an investment management firm that invests across diverse asset classes with a key focus on alternative investments.

The company’s product and services offering is delivered through a regulated and licensed environment by the Financial Services Regulatory Authority in the country where applicable.

Incorporated

It was incorporated as a public company on July 16, 2013 under the name Escalator Capital Limited.

On December 12, 2013, the company’s name was changed to Ecsponent Limited and on June 27, 2017, the Issuer’s name was changed to Ecsponent Swaziland Limited.

On March 31, MHMK Group Limited acquired control of the company from its previous major shareholder and renamed it to ESW Investment Group Limited on April 3, 2020 as part of the transformation of its business model.

The issuer’s registered office and primary place of business is on the fourth floor, Sibekelo Building 2, Mbabane Office Park, Mhlambanyatsi Road, Mbabane.

The programme memorandum will also be available on the ESW Investment Group website.

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