Se­cu­ri­ties reg­u­la­tor approves debt list­ing re­quire­ments

Chronicle (Zimbabwe) - - Business -

ZIM­BABWE’S se­cu­ri­ties reg­u­la­tor has ap­proved rules al­low­ing com­pa­nies to raise debt cap­i­tal on the na­tion’s stock ex­change, in­clud­ing min­i­mum re­quire­ments for amounts and ma­tu­ri­ties of bond sales.

Com­pa­nies will have to raise a min­i­mum of $1 mil­lion with a ma­tu­rity of at least one year to qual­ify for a list­ing, ac­cord­ing to draft reg­u­la­tions ap­proved by the Se­cu­ri­ties and Ex­change Com­mis­sion last month, a copy of which was ob­tained by Bloomberg and con­firmed by the reg­u­la­tor.

“We’ve ap­proved the reg­u­la­tions and are now wait­ing for them to be” pub­lished be­fore be­ing adopted, Tafadzwa Chi­namo, chief ex­ec­u­tive of the SEC, said by phone on Fri­day. “There is no time frame as yet.” The Zim­babwe Stock Ex­change is look­ing to ex­pand into debt in­stru­ments to gen­er­ate ad­di­tional rev­enue amid a slump in stock trad­ing, chief ex­ec­u­tive of­fi­cer Mr Al­bany Chirume, said in June.

The bourse is cut­ting jobs after rev­enue fell by half in 2015, he said.

The doc­u­ment sets a frame­work for the list­ing and trad­ing of debt se­cu­ri­ties as well as pro­ce­dures gov­ern­ing new is­sues and dis­clo­sures nec­es­sary to pro­tect in­vestors. Greater dis­clo­sure would lead to lower risk and yields, it says.

The ex­change, which has op­er­ated in the cap­i­tal of Harare since 1951, has 63 listed com­pa­nies with a to­tal mar­ket value of about $2.72 bil­lion.

The big­gest com­pany on the ex­change is Delta Cor­po­ra­tion, part owned by SAB Miller Plc, with a mar­ket value of $824 mil­lion.

Units of Bar­clays Plc and Bri­tish Amer­i­can To­bacco Plc also trade on the ex­change. — Bloomberg

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