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Alpha Asset Management (Pvt) Limited is seeking to raise $2 million for micro-finance institutions through the floatation of asset-backed bonds.
The bonds will be issued through a special purpose vehicle Dolinate Investments and the money raised will be used by micro-finance institutions (MFIs) to boost credit mainly to small-to-medium enterprises.
“Increased access to micro-finance by individuals, micro, small to medium- scale enterprises will accelerate financial inclusion and support economic growth,” said Alpha.
The asset management company said the proposed issue of $2 million bonds will be the first tranche of a $10 million medium-term asset-backed bond programme that will be issued by Dolinate Investments for subscription by investors.
Alpha said subject to market conditions, the issuer may from time to time issue bonds on terms and conditions contained in the programme information memorandum modified through a pricing supplement pursuant to each tranche of bonds offered thereof.
The proceeds of the proposed bond will be used to discount a select of quality loan receivables from MFIs, thereby assisting them increase credit to individuals and institutions involved in micro, small and medium enterprises.
“The bond is an alternative asset class and its issue expands the investible market to investors operating in a market with limited financial assets.
“The bond offers investors an opportunity to improve the performance of their investment portfolio by including this asset with high return to their portfolio without assuming primary risk,” said the company.
Online Reporter