Getbucks Botswana, a notable player in the micro-lending business will raise more cash in the capital market to power its operations going forward.
The disclosure is contained in the Company’s financial report for the year ended June 2017, in which the unlisted lender posted a profit of P9, 8 million, against P404, 923 made the same period in 2016.
“The Group expects to raise further funding for the business through the listing of additional tranches under the Programme Memorandum on the Botswana Stock Exchange by 31 January 2018,” said a statement signed by Chairman Jeffery Sibisibi and Managing Director, Marthin De Kok.
The Gaborone-based company has previously raised capital in the domestic market. So far it has raised P71 million under its bond programme which was launched early last year. During the year under review, Getbucks which offers loans to formally employed people, stated that its revenue and loan book jumped by 6 percent to P85, 6 million and 73, 3 million respectively.
Despite the modest increase in profits, the company has not declared any dividends. Getbucks Botswana has been active in the domestic market since it was established some few years ago. Last year, the company agreed to acquire 50 percent of the share capital in Sure Choice Proprietary Limited , a micro finance business, for a total purchase consideration of P10 million.
“The acquisition is subject to all customary regulatory approvals, and GetBucks’ regulatory approval requests have been filed with the Non-Bank Financial Institutions Regulatory Authority (NBFIRA),” disclosed Sibisibi and de Kok. As part of the agreement, GetBucks has taken over the loan owing to the Seller by Sure Choice, as part of the purchase agreement.
Going forward, Getbucks is expected to improve its profitability and grow its asset base while leveraging cutting edge technologies in delivering above average customer service and competitive pricing and products.
Getbucks has also announced the appointment of Marshall Chimedza as Finance Director. He replaces Clever Hamadi who passed on last July.