ZSE raises US$5,4m on debt market

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The Zimbabwe Stock Exchange (ZSE) says it has so far raised US$$5,4 million on the debt market since the re-establishment of the Fixed Income Board (FIB) in May this year.

By Melody Chikono

THE ZSE established the FIB to facilitate the operation of its re-established debt market nearly two decades after it ceased operating. The platform is for the listing and trading of fixed income or debt securities.

However, since the board started operating, there has been only one listing on the debt security in the form of medium term note issued by Getbucks Micro Finance Bank.

ZSE acting CE Martin Matanda said there have been no secondary market trades so far recorded as well as no government securities currently listed on the ZSE.

“There has been one listing of debt securities in the form of Medium Term Notes issued by Getbucks Microfinance Bank. To date, US$5,4m worth of capital has been successfully raised on the ZSE’s debt market,” he said.

However, with the lowering in transaction fees for the market in May 2017 and the imminent gazetting of the debt market rules, Matanda said the bourse anticipated anticipate additional corporate debt listings on the market.
Meanwhile, a total of 21 companies have been delisted on the ZSE in the last seven years owing to the difficult economic environment and non-compliance with ZSE listing requirements.

This is against a total of six new listings over the same period, but the ZSE maintains that it has taken a proactive approach to source listings which have resulted in the increase since 2014.

In 2013 alone, Apex Corporation, Cairns Holdings, Celsys, Chemco Holdings, Interfresh, Gulliver, Interfin, Lifestyle Holdings, Phoenix Consolidated, Steelnet and Trust Holdings were delisted from the exchange.

Matanda said one company also delisted voluntarily following approval of such a move by its shareholders.

The year 2016 saw Pelhams and Radar being delisted following a voluntary application by Pelhams in 2015 after being placed under liquidation while Radar applied for voluntary delisting.

“The de-listing trends experienced in 2013 and 2014 were largely due to a process of clean-up of the official list to ensure compliance with ZSE listing requirements, the economic environment has also not spared some of the issuers on the ZSE as some delistings were attributable to judicial management and liquidations over the past five years,” he said.

Take-overs also contributed significantly to the delistings in the past five years.

While ZSE does not delist any active counters on the platform, Matanda said it will only initiate processes to delist active counters if there are issues to do with non-compliance with listings requirements as per the procedures laid out in its framework.

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