NPC LAUNCHES E20M BONDS

MBABANE – Nkonyeni Pre-cast Limited (NPC) is launching bonds to the sum of E20 million, maturing on April 5, 2034, with a coupon prime plus 1.5 per cent.

According to a press release, the bonds will be issued using the competitive multiple bid auction model and is open to the public, including individuals, corporate and institutional investors. All investors should apply through the Transfer Secretary SNG Grant Thornton Eswatini.  

Provide

The purpose of the issuance is to provide Nkonyeni Pre-cast with funding to undertake its expansionary programme, fund working capital, modernize operations and invest in operational expenses that seek to create economies of scale for the group, including the costs associated with operating Nkonyeni Pre-cast business. NPC will further use the proceeds from this bond issuance to significantly reduce the carbon footprint of the organisation and place it on the cutting-edge of going green in an industry that is lagging behind green initiatives. The applicable Pricing Supplement and other relevant documents pertaining to the issuance are available for viewing at SNG Grant Thornton Eswatini, Nkonyeni Pre-cast Limited Offices, Farm 523, Nkonyeni Farms, Sidvokodvo, as well on the Nkonyeni Pre-cast Limited website www.npc.co.sz. Nkonyeni Pre-cast Limited invites interested parties to contact their stockbroker or collect application forms and further details at the SNG Grant Thornton Eswatini offices, Karl Grant Street, Mbabane.

Report

The Eswatini Stock Exchange (ESE) 4th quarter report indicated that this period realised seven new note issuances and no reopening. There were reportedly eight bonds that matured in the period under review. This saw the cumulative corporate bonds outstanding as of December 31, 2023 decreased to E1.621 billion from the previous quarter’s outstanding amount of E1.704 billion. This marked a -4.87 per cent decrease in total corporate bonds outstanding. Year-on-year, total corporate bonds outstanding decreased by -4.96 per cent from E1.705 billion in December 2022 to E1.621 billion in December 2023. On December 8, 2023, the ESE Market Committee approved the listing of Nkonyeni Pre-Cast Limited (NPC) E200 million Medium-Term Note (MTN).

Instrument

It was hoped that the addition of this debt instrument to the equity it raised in November through the IPO, would help maximise NPC’s capital structure. Meanwhile, last month, the Central Bank of Eswatini opened up the first investment opportunity in 2014 through the issuance of bonds at fixed coupon rates of up to 11.00 per cent to the tune of E400 million.
The central bank re-opened the government bonds to the sum of E400 million with coupon rates fixed at 10.00, 10.25, 10.50 and 11.00 per cent. These coupons are set to mature in 2026 to 2033, respectively.

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