dyton mupawaenda
Business Reporter
Diaspora Kapita (DK), a diversified South Africa-based investment holding firm expected to list on the Victoria Falls Stock Exchange (VFEX) in the near term, intends to raise up to US$10 million through a diaspora bond issuance to acquire properties for sell to Zimbabweans living overseas.
The company is being courted by Bridgefort Capital, which voluntarily delisted from the Zimbabwe Stock Exchange (ZSE) recently, terminating the listing of its Class A and Class B preferred shares from the exchange.
Diaspora Kapita is expected to undertake a reverse listing on the VFEX taking over from its would be parent firm, Bridgefort Capital.
In an interview at the sidelines of the Association of Investment Managers of Zimbabwe in Cape Town, South Africa last Friday, Mr Vhusi Phiri, chief executive of Diaspora Kapita said the bond was targeting institutional and retail investors in the country.
Retail investors are individual investors who buy and sell securities for their personal accounts. They are non-professional investors who typically invest smaller amounts compared to institutional investors. The money raised would be directed towards the acquisition of properties, including developed residential stands, shell houses and completed housing units.
“Diaspora Kapita intends to issue the first diaspora-backed bond in Zimbabwe. This bond, to be named the Diaspora Remittance Bond, will target institutional and retail investors in Zimbabwe. The proceeds from the bond will be used to acquire properties on behalf of the diaspora,” said Mr Phiri.
Diaspora Kapita has already identified property development partners in Zimbabwe who would contribute their assets to back the bond, said Mr Phiri.
The repayment on the bond, which is expected to be listed on the Victoria Falls Stock Exchange, will come from offshore diaspora communities who will purchase properties, he added.
Mr Phiri said Diaspora Kapita was finalising the features of the bond, which would be made public as soon as they are finalised, in collaboration with their co-arranger, a local bank.
He, however, hinted that one of the biggest features of the bond was that institutional and local investors in Zimbabwe can harden their assets, as repayments will come from foreign exchange coming outside Zimbabwe.
There is also an opportunity for investors to participate in the bond by contributing existing development properties, such as developed stands, shell houses, or finished units.
The bond offers investors exposure to an asset generating revenue beyond Zimbabwe’s borders through an instrument listed on the Victoria Falls Stock Exchange.
Diaspora Kapita is an investment company formed through the collaboration of Africans based in the diaspora.
A global bridge for Zimbabweans, Diaspora Kapita, founded by 13 Zimbabwean expatriates connects investors worldwide to transformative opportunities.
Its diverse investments span financial services, insurance, agritech, fintech and funeral services.
With 38 branches nationwide, Diaspora Kapita is well-positioned to capitalise on South Africa’s significant funeral services market. Given the average annual deaths of 520 000 and a potential 60 million policyholders, the opportunity for growth is substantial.
The company collects an average of US$46 million annually from funeral premiums and leverages the MTN mobile platform to market its products.
While currently focused on the repatriation of bodies from South Africa to Zimbabwe, Diaspora Kapita plans to expand its operations within Zimbabwe.
Its agro-business primarily focuses on cattle and holds a stake in Montana Meats
Subject to regulatory approvals, Diaspora Kapita intends to list on the Victoria Falls Stock Exchange within the next two weeks to raise US$5,5 million for expansion.
This would be the first listing of a business that generates 100 percent of its revenue offshore.
Essentially, this means investors can gain exposure to an asset generating offshore revenue.
Online Reporter
