By JAMES KUNDA –

BAYPORT Financial Services Zambia has successfully raised K171 million in floating rate notes from the domestic capital markets.
Finance director Prisca Shimwambwa, said in a statement  that the micro-lender has appointed Barclays Africa to establish a programme and issue the bonds.
Ms Shimwambwa said the strength of investor appetite saw the value of the transaction increase by K21million, from the initial K150million offered as new investors and Bayport’s existing lenders came together under a single security structure.
She said the landmark transaction was the single largest bond issue in Zambia to be issued by a corporate entity and marks an important step in the history of the country’s domestic capital markets.
“Barclays Bank Africa acted as sole lead arranger for the transaction through Barclays Bank Zambia and via its corporate and investment banking division based in Johannesburg, South Africa.
“This transaction will allow us to diversify our funding sources and complement our imminent deposit taking phase,” she said.
The transaction received anchor support from the International Finance Corporation (IFC), which committed to invest in a third of the initial transaction size before the deal was taken on the road.
As a further endorsement, ALCBF, the local currency investment fund of German-government owned development finance institution KfW, committed to 13 per cent of the transaction pursuant to the road show.
Barclays Bank managing director Saviour Chibiya said the institution had been a lender to Bayport for a number of years, and this bond is a further endorsement from the rest of the investor community.
“We are delighted to have successfully taken Bayport to the capital markets in Zambia, and this transaction cements Barclays Africa’s relationship with Bayport.
“Barclays Bank Zambia has been a lender to Bayport for a number of years, and this bond is a further endorsement from the rest of the investor community of Bayport as an institution,” Mr Chibiya said.