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Barclays Africa supports Bayport Zambia’s debut bond issue of ZMK172 million  

 6/25/2014 

Bayport Financial Services in Zambia has successfully raised ZMK171-million in floating rate notes from the domestic capital markets. Zambia’s largest micro-lender appointed Barclays Africa to establish a programme and issue the bonds. The strength of investor appetite saw the value of the transaction increase by ZMK21-million from the initial ZMK150-million offered as new investors and Bayport’s existing lenders came together under a single security structure.

This landmark transaction was the single largest bond issue in Zambia issued by a corporate entity and marks an important step in the history of the country’s domestic capital markets.

Barclays Africa acted as sole lead arranger for the transaction through Barclays Bank Zambia and via its Corporate and Investment Banking division based in Johannesburg.

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% of the transaction pursuant to the roadshow.

“This transaction will allow us to diversify our funding sources and complement our imminent deposit taking phase,” said Prisca Shimwambwa, Finance Director of Bayport Financial Services, Zambia.

“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 in 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,” said Saviour Chibiya, MD of Barclays Bank, Zambia.

“Our ability to develop a flexible funding solution for the client by establishing a universal secured platform through which both banks and institutional investors could extend funding to Bayport without being subordinated to one another, satisfied both the client as well as investors’ requirements,” said Prasanna Nana, Head of Debt Capital Markets at the Corporate and Investment Banking division of Barclays Africa.

“We are proud to have been selected by Bayport to not only raise capital of this size in the Zambian bond markets, but also being able to play a role in enabling Bayport and their clients to realise their ambitions in the right way,” added Nana.

In addition to the above deal, Barclays acted as joint lead manager in the Republic of Zambia's successful pricing of a new $1bn 10-year debt transaction two years after the country's inaugural debt transaction in 2012 which was also lead managed by Barclays.

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Note to the editor:

About Barclays Africa:

Barclays Africa Group Limited is 62.3% owned by Barclays Bank PLC (Barclays) and is listed on the JSE Limited. The Group is one of Africa’s major financial services providers offering personal and business banking, credit cards, corporate and investment banking, wealth and investment management as well as bancassurance. The Group was formed through combining Absa Group Limited and Barclays’ African operations on 31 July 2013. Reflecting the enlarged group’s pan-African focus, the name changed from Absa Group Limited to Barclays Africa Group Limited on 2 August 2013. Their registered head office is in Johannesburg, South Africa and they have majority stakes in banks in Botswana, Kenya, and have ownership of Ghana, Mauritius, Mozambique, Seychelles, South Africa, Tanzania (Barclays Bank Tanzania and National Bank of Commerce), Uganda and Zambia.

The Corporate and Investment Banking division of Barclays Africa is a leading African corporate and investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.

In Zambia, Barclays is one of the country’s leading banks, employing over 1,000 people, and serving tens of thousands of customers and clients across the country through a network of 55 branches and 150 ATMs.

About Bayport Financial Services:

Bayport Financial Services is part of the Bayport Group, whose lending businesses span the African continent, including South Africa, with a growing presence in Latin America. Bayport in Zambia has been a pioneer in developing the payroll deduction model in the micro-finance lending sector, growing into the largest micro-lender with a market share close to 60%. Bayport has demonstrated itself to be an instrumental player in changing the landscape of financial services in Zambia in providing credit to Zambians who would not ordinarily have access to banking and credit facilities.

The company has been a pioneer in extending credit in a responsible manner. Loans extended by Bayport have been proven to facilitate productive activities, largely financing education, agribusiness, trading/inventory building and construction projects, enriching the lives of Zambians in the process. It is this appeal that has led to the endorsement in the form of IFC’s and KfW’s investment into this transaction.

Issued by:
Bheki Mpofu
FTI Consulting
+27 11 214 2409
+27 83 552 2109
bheki.mpofu@fticonsulting.com

For further information contact:
Graeme Coetzee
Principal
Corporate and Investment Banking, Barclays Africa
+27 11 895 6695
+27 79 695 9798
graeme.coetzee@absacapital.com

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