Contends that issuers typically prefer flexibility
Calls for a nuanced approach
Tapologo Motshubi, the Portfolio Manager and Director at Allan Gray Botswana, has raised concerns over potential deterrents for prospective issuers considering public listings due to the new requirement mandating the inclusion of all debt instruments under a Botswana Stock Exchange (BSE) approved program.
Motshubi addressed these concerns during a panel discussion at a recent bond market conference, responding to Kopano Bolokwe, the BSE’s Head of Product Development. Bolokwe sought Motshubi’s insights on a specific section of the debt listing requirements stipulating that “All Debt Securities issued under a new BSE-approved Disclosure Document or Supplementary Disclosure Document shall be listed.”
While Motshubi acknowledged the underlying rationale for such requirements, he contended that issuers typically prefer flexibility in their operations. “I think it’s likely that if they have the flexibility to say okay, this part of the program will be listed, this part won’t, it is more likely to accommodate their needs.”
Despite Motshubi advocating for increased public listings, he emphasised that it might not necessarily serve as a compelling incentive. “We are at the stage where we need to do all we can to attract issuers.” In his perspective, this necessitates a nuanced approach, allowing for a portion of the program to specify that a maximum of 20% of issuances can be private, with the remainder being public.
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