Mesh.trade launches first tokenised corporate bond on the continent
MESH.TRADE, a digital capital markets platform for the issuance, trade, and management of smart financial assets, has launched the first tokenised corporate bond in Africa, creating a new distribution channel for businesses to raise capital directly from the market.
In a move that Mesh.trade expected would reinvigorate private capital markets on the continent, the first tokenised corporate bond on the Mesh.trade platform was issued by “Die MOS Initiatief” to raise R100 million to expand its network of private schools offering mother-tongue education. The10-year floating rate bond is to pay a quarterly coupon of Prime+2% and will be serviced by Mesh.trade over its full life-cycle.
Well-known economist Dawie Roodt, a “Die MOS Inisiatief” board member, said in a statement he was pleased to be part of the initiative to build more schools offering mothertongue education.
“It’s a very good investment. The idea is that this will be a very tradeable tool. This means you can buy and sell it before its expiration date. Of course, there will be big investors who would also like to purchase these tokenised bonds, but we have decided to make it possible for the man in the street to invest in and be part of this initiative. Therefore, the minimum amount you can invest is R5 000,” said Roodt.
Mesh.trade founder and MD Connie Bloem said this was the first of many other smart assets that Mesh.trade would be introducing in the coming months.
The MOS bond is a public offer to subscribe for 20 000 tokenised notes issued natively as smart assets on Mesh. trade. The MOS bond is fully underwritten and guaranteed by the Trust vir Afrikaanse Kuns, Kultuur en Erfenis, part of the Dagbreek Trust family.
“While high-growth companies around the world are increasingly in search of alternative, and viable means for raising capital outside of today’s inaccessible, inefficient, and illiquid traditional market mechanisms, sophisticated investors are likewise clamouring for the opportunity to access digitally native smart assets, without the complexity and costs associated with traditional financial markets.
“Africa’s first digital corporate bond is an important milestone,” said Bloem.
“With our decades of fintech and capital markets experience, our focus is on simplifying the process of raising capital and enabling this through our blockchain-based multisided capital markets ecosystem, giving businesses a viable and reliable alternative to raise the capital they need to fund their growth,” he said.