GetBucks to raise $15m

HARARE - Financial services group GetBucks is back on the market to raise an additional $15 million through debt instruments.

This was after the company last month raised $5 million in its debut bond on the Zimbabwe Stock Exchange as part of its strategies to raise $30 million through debt security.

“The issuer to issue the notes in order to re-finance the existing financing facilities and thereby reduce the cost of funding,” GetBucks said.

Currently, the micro-finance institution’s marginal cost of funding is 12,5 percent against a target cost of funding of 10 percent in the next three years and then to attain single digit of funding beyond the horizon.

GetBucks was adequately capitalised with a net equity position of $11,8 million as at December 31, 2016, a  capital position which is well above the minimum regulatory threshold of $5 million for deposit-taking micro?nance institution.

A subsidiary of Luxembourg-registered MyBucks SA, GetBucks commenced operations in 2012 as a micro-finance institution and the business has grown into one of the largest micro-finance lenders in Zimbabwe.

To date, GetBucks said it has disbursed in excess of 26 000 loans amounting to approximately $30 million.

The company currently services about 15 000 clients. It has a staff complement of 66 and 14 branches.

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