22 Jan 2024

Absa Bank Botswana has listed an issuance of a sustainable bond on the Botswana Stock Exchange (BSE) which marks a ground breaking achievement that underscores the evolving dynamics of the capital market.

Speaking during the bell-ringing ceremony marking the bond issuance in Gaborone January 20, BSE Chief Executive Officer, Mr Thapelo Tsheole, said the sustainable bond amounting to P47.4 million symbolised the transformative moment in Botswana’s capital markets.

“The infusion of sustainable bonds into the country’s capital markets reflects a growing trend towards responsible and ethical investing and demonstrates Botswana’s commitment to sustainable development,” he said.

 Mr Tsheole commended ABSA Bank Botswana for the bold decision to become a pioneer in listing sustainable bond in the exchange market. 

The accomplishment, he said, was a testament to Absa’s dedication to environment, social and governance principles and thus the milestone would inspire other issuers to follow suit and also contribute to the growth of sustainable market growth.

 He said the importance of the sustainable bond issuance could not be over emphasized as such bonds provide investors with an avenue to support projects with positive environmental and social output. “By in cooperating sustainability in the capital markets would not only attract socially responsible investors but would also foster a culture of social responsibility in alignment with the country’s ongoing efforts to encourage sustainable financing,” he said.

 Mr Tsheole said BSE has introduced a fee incentive for listing sustainable bonds, offering 25 percent discount on initial and sustain fees relative to the bond.

 This strategic decision, he said had played a pivotal role in elevating Botswana’s ranking in the Absa Africa financial markets index 2023 from number eight to number six. He said BSE aspired to transform into world class security exchange that attracts both local and international investors in fostering a conducive environment to sustainable financing in line with contribution to the long term resilience of Botswana’s capital markets.

 Mr Tsheole said the BSE recorded positive returns in 2023, highlighted by index appreciations for both total return and market capital up by 25.5 per cent and 15.6 per cent respectively. “We had a record turnover of about P4.1 billion last year and also a significant increase in market capitalization with a number of listed instruments increasing from 82 to 158,” he said. Absa Bank Botswana’s Managing Director, Ms Keabetswe Pheko-Moshagane, said the listing of the sustainable bond was a milestone achievement which kicked started an era of sustainable financing in Botswana.

Ms Pheko-Moshagane said the landmark listing represented on going achievements by Absa Botswana to try positive change and build a more resilient and sustainable future. “The bond listing is testament to the bank’s commitment to a sustainable future which acts like a call for action echoing the message of sustainability as a core to successful business transition,” she said . She said Absa Botswana had implemented a comprehensive sustainability financing frame work that guides the bank’s operations which includes guidelines and criteria governing the issuance of financial instruments that would insure alignment to environmental, social and governance principles.

 She said the proceeds of the bonds would directly be channelled to projects that would drive the sustainability agenda through enabling investment in renewable energy and sustainable infrastructure projects while empowering communities. ENDS