Kananelo Mokhele
In a landmark moment for Lesotho’s economy, Lesana Lesotho has listed two corporate bonds with the Maseru Securities Market (MSM), marking a significant step forward for the enterprise and Lesotho’s capital market development.
The micro-finance company has listed its five-year and three-year corporate bonds with the MSM, pioneering the listing of corporate bonds in the capital market.
By definition, corporate bonds are debt securities issued by companies to raise capital, essentially borrowing money from investors who then receive interest payments and the principal back at maturity.
Through their listing, Lesana became only the second company to list with MSM since its establishment by law in 2014 through the publication of Capital Markets Regulations of 2014. RNB Properties Limited became the first company to list with MSM in December 2021.
Lesana’s listing also brings some much-needed respite for the bourse, which for years has been viewed as nothing more than an experiment going nowhere fast.
Dr Maluke Letete, the Governor of the Central Bank of Lesotho in his speech at the listing launch, commended Lesana’s achievement and emphasised the broader implications for the country’s economy.
“Lesana’s admission to the MSM is a sign of our maturing financial landscape,” he said.
“It demonstrates that local companies can meet the highest standards of compliance and governance required for listing.”
Dr Letete highlighted the rigorous process Lesana underwent to meet all regulatory requirements, including full financial disclosure, adherence to corporate governance standards, and overall regulatory compliance.
“This shows that our regulatory environment is robust and that we are serious about transparency and investor protection,” he noted.
Lesana’s listing adds momentum to the local securities market, opening new avenues for both institutional and retail investors.
“This is not just a win for Lesana, it’s a win for the entire market,” the Governor said. “The presence of such companies brings diversity and vitality to our exchange, offering new investment opportunities and strengthening the market ecosystem.”
The Governor also praised Lesana’s financial strength and growth trajectory. With consistent net profits over the past four years – M27.9 million in 2020, M26.6 million in 2021, M40.6 million in 2022, and M42.6 million in 2023 – Lesana’s performance reflects a stable and growing enterprise. “These figures are not just numbers; they are a reflection of sound management and market potential,” he said.
In line with Lesana’s mission, Dr. Letete stressed the importance of youth participation in the economy.
“We need to empower young entrepreneurs to take part in building this country. We must find our own ways to fund development and reduce dependency on external aid.”
Lesana Lesotho has consistently championed youth entrepreneurship and innovation, values that align with the nation’s broader development goals. The listing stands as a testament to what can be achieved through local initiative and strategic vision, Letete said.
The Governor concluded by encouraging investors to explore the opportunities that Lesana presents.
“We welcome investors to consider Lesana stock as part of their portfolios,” he said. “It is a solid company with a strong foundation and promising future.”
Lesana’s listing not only signals confidence in its own operations, but also reaffirms the MSM’s commitment to building a transparent, dynamic, and inclusive financial marketplace for Lesotho.
Seabata Ntelo, the CEO of Lesana, said: “Today marks a historic moment in the history of Lesana, and indeed in the history of MSM, as Lesana becomes the first company to list a commercial paper on MSM. It was a long journey which took courage and perseverance to see to finality.
“We tripped and fell, but we picked ourselves up and pressed on. We never lost sight of the bigger picture: to raise funding and to kickstart Lesotho’s capital market. To provide an instrument that Basotho can participate in, and generate good value for money while assisting in extending the ultimate goal of financial inclusion.”
Ntelo expressed confidence that their prospective investors would not be disappointed in choosing to inject their funds in Lesana.
“As the business and the entire group, we have never failed to honour our financial obligations, and the group has been in business for more than 20 years. That position is not about to change, and I assure our investors that their investments are in the right hands. You will reap the results you expect at maturity of your investments and at the stipulated periods,” he stated.
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