Ecsponent concludes IPO in respect of R10 billion Domestic Medium Term Note Programme

10 December 2018 Ecsponent Limited

JSE-listed African financial services group Ecsponent Limited (JSE:ECS) today announced that it has successfully concluded its Initial Public Offer (IPO) in respect of its R10 billion Domestic Medium Term Note Programme (DMTN Programme).

Following this IPO, which ran from 3 – 7 December, the first tranche of notes under the DMTN Programme is confirmed to be listed on the JSE on 10 December.

The notes offered via this programme are JSE-listed medium-term, interest-bearing securities that offer retail, corporate and institutional investors access to superior interest rates. Each of the options have a three-year term and can be purchased in R100 denominations, with minimum investment requirements starting from R10 000. Once listed, they can be traded through the JSE.

Rates offered

* Nominal annual compounded monthly (NACM).
** Capital and interest paid at the end of the investment term.

The DMTN Programme supplements Ecsponent’s highly successful R5 billion listed preference share programme. Since its introduction in 2014, the group has raised over R1.5 billion through its listed investment products and recently announced that it secured international funding facilities.

“The notes add to the product range offered to our investor base and the tax treatment of the DMTN Programme is more favourable to the group when compared to the preference share programme. This will contribute to lowering the overall cost of capital, directly affecting the bottom-line,” says Ecsponent Limited CEO, Terence Gregory.

“The capital raised through the DMTN Programme will be used to accelerate the group’s Equity Holdings investments and operational expenditure to advance growth. Our Equity Holdings portfolio is a critical component to balance short and long-term investment horizons.”

“We have created substantial growth momentum through successfully raising and deploying capital. Our expertise in these areas has been a key driver behind the group’s exponential growth over the past eight years. This programme will assist in accelerating our growth, allowing us to significantly grow our Equity Holdings portfolio and add to the diversification of our investments across sectors and geographies and currencies,” Gregory concludes.

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