Stanbic Bank supports Botswana Savings Bank’s debut Tier II bond issuance
18 Dec 2023
This bond issuance will enhance BSB’s capital levels and thus maintain these levels well above regulatory requirements. Stanbic’s role in the transaction was facilitating the end-to-end issuance process from investor engagements, overseeing drafting of legal documents with legal counsel to the placement and listing of the bonds on the Botswana Stock Exchange.
The development of local debt capital markets is a key priority for the Bank, and this transaction is in line with our strategy to contribute towards that goal. With the evolving client landscape and market needs, Stanbic prides itself on partnering with organisations such as BSB to leverage our deep local knowledge and provide clients innovative solutions. Additionally, this issuance will further deepen Stanbic’s partnership and support to Botswana’s state-owned entities.
BSB is an institution wholly owned by the government of Botswana with a specific mandate to provide inclusive financial services and encourage the citizens of Botswana to save. BSB was recently awarded the winner of the 2023 Best Savings Bank in Botswana Award by UAE-based publishing company International Business Magazine. This award recognised BSB for making strides in the local market by excelling under the following criteria:
- Garnering maximum trust in the banking system of Botswana
- Creating an ecosystem of financial inclusion for Batswana
- Provision of banking services that play a significant role in the development of Botswana
- Being a trusted financial services provider in Botswana
Financial inclusion remains a key priority in Botswana, and BSB has remained at the forefront of driving that initiative, in line with the country's Financial Inclusion Roadmap and Strategy. Over the years, BSB has deployed various strategies of branch and channel distribution across different areas of Botswana in order to provide affordable banking services to the unbanked population. They currently provide the lowest cost and fastest banking financial and life event services for businesses and individuals of all income groups in Botswana and beyond. The Bank recently introduced its 3-year strategy plan, which will set a path to being a fully digital, financially inclusive and a leading Botswana-owned integrated financial services provider. This strategy includes increasing its footprint in Botswana by opening new branches across the country to ensure that BSB services are accessible to more Batswana. BSB believes that financial inclusion can aid national growth and impact people's welfare, primarily in areas that have limited access to banking services, and the organisation prides itself on providing services and products that will lead to more wealth and jobs for Botswana and its citizens.
Botswana's strong credit rating, history of consistent growth and low-risk investment environment make it ideal for banks to access the debt capital markets. The attractive yields and diversification benefits offered by the market are appealing to both domestic and international clients. Additionally, banks can contribute to Botswana's economic development by financing infrastructure projects and fostering a culture of saving and investment across the nation.