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Two list on BSE at once

Publishing Date : 19 December, 2017

Author : REARABILWE RAMAPHANE

The Botswana Stock Exchange (BSE) on Wednesday reached an epic milestone by listing two international entities on the same day.


The two companies that listed simultaneously are Australian founded Company, Tlou Energy which intends to bring power to Botswana and Southern Africa through Coal Bed Methane (CBM); and the World Bank Group sister company, the International Finance Corporation (IFC). BSE executives expressed delight at the two listings of which the Tlou Energy listing made a total of equity listings three (3) so far in 2017 and the IFC Bond brought the number of bonds issued so far in 2017 to five (5).


When delivering welcome remarks at the listing ceremony held in Gaborone at the Stock Exchange House, BSE Chief Executive Officer, Thapelo Tsheole reiterated that listings were a watershed moment in the progress of his organisation because this was the first time in history that witnessed two listings in one day. “With the addition of Tlou Energy, we are happy to celebrate a total of three equity listings so far in 2017; the IFC Bond will bring the total number of bonds issued so far in 2017 to six,” he said.


HISTORY IN THE MAKING

Tlou Energy seeks to raise around BWP33, 000,000 to fund predevelopment activities at its Lesedi CBM Project. The company listed the entire issued ordinary share capital of Tlou Energy Ltd on the Main Board of the BSE. Managing Director of Tlou Energy, Gabaake Gabaake underscored the delight of his company after the successful listing on the growing BSE board. He said the undertaking will give Batswana an opportunity to own profits from coal and energy operations sourced right in their own back yard.


Tlou Energy is an AIM and ASX listed company whose business involves the appraisal for and proposed production of CBM gas. Currently the company‘s focus is on its mining and prospecting projects for Botswana deposits which are considered highly prospective for CBM, with sizeable independently assessed CBM Reserves and Resources.  


Gaabake highlighted that his company plans to augment the energy requirements of the Southern African region. The regions is currently experiencing energy deficits at a period where both its population and economies are growing rapidly. “Tlou Energy intends to supply CBM gas to enable gas-powered generators to supply electricity and to replace existing diesel and coal fired power generation. The long-term objective of the Company is to build a mid-tier energy provider in southern Africa,” he said when sharing the overview of his company to prospective investors just before ringing the bell.  


Tlou Energy’s most advanced project, the Lesedi CBM Project, is located in the Karoo Kalahari Basin in south-eastern Botswana.  Having advanced the Lesedi Project, through the exploration and appraisal phase, Tlou Energy is now focused on development. The Managing Director shared that the decision to apply for a listing of Tlou Energy’s shares on the BSE is meant to enable the company to facilitate local investment in the project, and ensure that local investors have the opportunity to share in the upside associated with the emerging CBM industry in Botswana and returns on the associated infrastructure.


International Finance Corporation is a worldwide organization under the World Bank Group which issued and listed its Pan –African Domestic medium term note programme. The programme has been established in various African jurisdictions, including Botswana and was approved by the BSE on 1st December 2017, and on the same date the IFC issued notes with an aggregate nominal value of BWP260, 000,000 under a Programme Memorandum.


It was established in 1956 to further economic growth in its developing member countries by promoting private sector development. The IFC is a member of the World Bank Group, which also comprises the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the Multilateral Investment Guarantee Agency (“MIGA”) and the International Centre for Settlement of Investment Disputes (“ICSID”).


In partnership with private investors, the IFC assists in financing the establishment, improvement, and expansion of private sector enterprises by making investments where sufficient private capital is not otherwise available on reasonable terms. Oumar Sydi, IFC’s  Head of African region said his organizations seeks to bring together domestic and foreign private capital and experienced management and thereby create conditions conducive to the flow of private capital (domestic and foreign) into productive investments in its developing member countries. The bond which is worth over 250 million pula has since been declared to be channeled to Botswana Building Society (BBS)’s expansion and transformation into a fully fleshed commercial bank.


Furthermore the BSE CEO, Tsheole explained that, “We have since to date now also realized a total number of 6 bonds issued with the recent one before the IFC being that of the Botswana Development Corporation.” On equity listing this year, the BSE saw the delisting of 2 companies, Imara Holdings Limited and Golane Gold on March 31st and 11th August respectively which collectively held a total market capitalization of 1.2 billion pula. Total 2017 listings topped up the market capitalization by P2.3 billion with P575 million of total capital raised including the Tlou Energy listing.


Tsheole further highlighted that the listings will advance the domestic bourse. “Continentally, listings are low this trading period owing to a number of economic issues, companies are delisting eyeing for major exchanges so we are honored by the confidence of this two entities in our economy and stock exchange,” he said.

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