Harare – Finsec listed micro-finance firm, Untu Capital on Monday said it is paying interest due to bondholders in a first of such payments yet to come.
Taking advantage of the funding gap prevalent in the economy leveraging on ICT, Untu Capital launched U-Gain, Zimbabwe’s first mobile based retail bonds in December 2017.
The targeted $ 1 million debt financing was earmarked for start-ups and small businesses. Customers were able to purchase U-Gain bonds over a 30 day period using mobile money services like EcoCash and Telecash.
A bond is a certificate of public or private indebtedness that bears fixed interest for the buyer
The bond was successfully oversubscribed given the 173% which raised US$1.75 million against a target of US$1 million.
In cash-strapped economy of Zimbabwe, Untu capital has been able to include many more Zimbabweans in the retail bond purchase by eliminating the need to pay in cash or have a bank account and making the minimum investment as low as $50.
Untu Capital CEO Clive Msipha is on record saying the issuance of the U-Gain bond would contribute immensely towards the deepening of the country’s debt capital markets, and would allow increased financial inclusion as the proceeds of the issuance would be used to lend to micro, small and medium-size enterprises
Complimentary of the positive business activity, the company’s financial performances have continued on a positive trajectory, buoyed by a strong growth in its loan book.
Ecocash, Zimbabwe’s largest mobile money service provider by market value, has since incorporated Untu on their “EcoCash I-nvesta” sub-menu, which customers can access under the “regular” payments category on the EcoCash “make payments” general menu.
Equity Axis News
Equity Axis is an online financial media service platform focused on African markets offering real-time stock quotes, news, analysis and data.