Chronicle EditorEnacy Mapakame Business Reporter
UNTU Microfinance will this week become the first firm to list on the Financial Securities Exchange’s (Finsec) fixed income board with the listing of its medium term note. This follows approvals from the capital markets regulator — the Securities and Exchange Commission of Zimbabwe (SECZ). With the listing, Untu will also become the second company to trade on Finsec’s Alternative Trading Platform (ATP) following Old Mutual’s listing of its empowerment shares in December last year.
“It is coming in as an initial public offer (IPO) and is coinciding with the mobile share trading that the capital markets is introducing,” said a source privy to the developments who preferred anonymity. Last week, SECZ indicated it would pilot the mobile platform for trading of shares on the Zimbabwe Stock Exchange (ZSE) and Finsec this month before it goes live in December in a move that is expected to open capital markets to broader participation by allowing investors to trade shares on their mobile phones.
The fixed income board is a platform for the listing and trading of fixed income or debt securities and helps issuers to raise capital while giving investors a regulated platform to trade debt securities. It also affords issuers brand credibility as they go through all due processes with regulators, hence ensuring investors have guaranteed returns and dividends from their investments. The listing of Untu is a sign of steady confidence in the country’s debt market, following its revival. Untu is a local micro-finance firm, which since 2009 has served individuals as well as micro and small to medium enterprises providing financial assistance for their businesses. In assisting small businesses , Untu offers financing for the purchase of business equipment, motor vehicles as well as land and buildings.
Online Reporter