23rd January 2023
Own correspondent
The successful entry of the Botswana Savings Bank(BSB) bond issuance means the expansion of BSB’s horizons in raising capital, which ensures both means and opportunity for further growth of the organization; and represents an opportunity and a means for sustainable growth for the Bank officials revealed today.
This is in line with Botswana Savings Banks(BSB) Lesedi 2025 strategy and cements the pathway towards the attainment of our Vision, “To be the leading Botswana owned integrated financial services provider.”
“As we list, we assist in opening the floor for more active participation in the domestic market, ensuring Batswana play a meaningful and active role in the shaping of our national economy,” said said Nixon Marumoloa, Chief Executive Officer of Botswana Savings Bank(BSB).
He said, “The importance of transactions such as these, especially as Government seeks to reduce dependence on Government subventions by State Owned Enterprises (SOEs), is paramount, is massive, is huge, immense.
Marumoloa maintained that the listing further solidifies BSB’s brand equity in the market, reaffirming BSB’s commitment to the community and country as a trusted financial partner.
“We want our customers and the nation at large to know that we are here to support them and that they may engage us with full confidence and trust in our ability to serve them,” said Marumoloa.
He said, “This BSB bond issuance – sets in motion a series of events that will catapult the BSB to the next level. Eventually, we will reach the full One Billion Botswana Pula that this bond seeks to achieve, and to us at the BSB, this One Billion Pula figure is a massive number. BSB reported a total asset book having grown from P144 million in 2005 to P2.7 billion in December 2022.”
Marumoloa revealed that the BSB loan book has grown by BWP2.0b in the last 2 years and intends to grow by a further BWP2b in the next 2 years.
“We have evolved from a traditional bank to a 21st Century financial institution. Our footprint today stands at 11 branches now – 6 branches,” said Marumoloa.
As at end of December 2022, the market capitalisation of the 44 listed bonds (including commercial paper) stood at P24.7 Billion. During September 2022 the African Domestic Bond Fund ETF (ADBF ETF) also listed on the BSE taking the number of listed ETF’s to seven (7).
The ETF’s Market turnover recorded in 2022 amounted to P122.3 Million in comparison to P132.1 Million generated during the same period in 2021. Though the value traded declined by 8%, the volume traded increased by 7% and 783,050 units were traded in 2022 in comparison to 735,036 units in 2021.
“We have convened here this morning to celebrate the issuance of a new bond by Botswana Savings Bank from their P1 Billion Note Programme. For those who are not aware, a bond is a debt instrument acknowledging an obligation of indebtedness to a lender by the issuer of the bond for a specified period of time and with a pre-determined interest rate or coupon rate,” said Botswana Stock Exchange(BSE) Chief Executive Officer(BSE), Thapelo Tsheole.
He said, “In general, bonds are deemed less risky in comparison to shares because of the contractual obligations of the borrower to the lender as regards payment of interest and repayment of principal, among other things. External debt financing can be attained by issuing a bond on the BSE and this is applicable to both listed companies and unlisted companies. As with the case of BSB.”
Such issuances serve to reaffirm the role that the BSE plays in providing long-term sustainable finance to various entities for business expansion and thus, contributing positively to production and the growth of Botswana’s economy.
According to the BSE a total turnover of approximately P3.1 Billion was recorded in 2022 compared to P4.5 Billion in 2021. Equity turnover in 2021 was significantly high and this was largely attributed to the historic transaction regarding the acquisition of a majority stake of 78.15% in BancABC Botswana by Access Bank Plc amounting to approximately P1.1 Billion.
Under its current dispensation, the BSB was established by an Act of Parliament – the Botswana Savings Bank Act of 1992 – as a State-Owned Institution (SOE), with the purpose of providing banking and financial services for people across Botswana.
Its mandate is to provide banking products, and to ensure that all unbanked and underbanked places are fully included – inclusivity. The BSB offers financial services and products that range from personal loans, car loans and mortgage loans, and from normal savings accounts to corporate savings accounts.
The Bank is a member of the World Savings Bank Institute (the WSBI), an association of Savings Banks represented in over 90 countries worldwide.
opened during the last 4 years – we further have 18 ATMs across the country – 10 ATMS commissioned within the last 4 years!
It gives us great pride to be the sole service provider in some areas where financial services were previously non-existent (eg Hukuntsi & Letlhakeng)
This speaks to impact and growth.
Our ambition is strong, our hunger unwavering, and our collective passion and commitment to do more, be more and deliver more value is greater than it has ever been before.
We owe it to our people, customers, shareholder, and stakeholders to always invest and indeed deliver on this.
Our Strategy defines our new long-term direction, aims to set us on the path of being a fully digital and financially inclusive bank and to become the leading Botswana-owned, integrated financial services provider.
In December 2021, we implemented our new Core Banking System. This is the backbone in the Bank’s digital transformation agenda, ultimately phasing away the traditional “pass-books” as we introduce digital channels and automate our processes for customer convenience.
We are confident that the Bank’s transition to digitization will have a significant impact in the way we do business going forward.
Within the next few weeks – we will introduce BSB’s Agency Banking model, where we will outline how we will operate though +-200 Agents countrywide – these being retailers et al – such Agents taking the space previously occupied by BotswanaPost.
Today’s milestone therefore – is a signifier of how BSB conducts and will conduct business both internally and externally, underpinned by progress and change – by the mindset change and the transformative thinking, and doing that now informs our business and business philosophy.
And so, today is equally symbolic and literally our turnkey moment for the future.
We are committed to building upon this bedrock for greater progress.
