MSE courts investors to raise capital on MSE
Malawi Stock Exchange (MSE) has asked businesses to look at the local shares market remains as a critical platform for raising cheaper capital and an investment avenue through which investors can grow their investments.
MSE chief executive officer John Kamanga, in an interview on Wednesday, observed that firms continue to focus on listing of shares on the stock market but the market remains a critical aspect in rising long-term finance.
“The market has the equity and bond platform. Companies have been focusing
on the traditional way of the market by only issuing shares but within the market yet we have the bond aspect which is a critical tool in raising income.
“With the stock market it is possible to provide patient capital through the fixed income angle. Investors thus need to think and look at the MSE when raising capital because the market is not only there for listing of shares but it is also capable though the bond and fixed income side.” he said.
equity and bond platform
Earlier Stockbrokers Malawi Limited chief executive officer Noel Kadzakumanja said the stock market presents numerous advantages to investors among others having the potential and access to large pools of capital and in an efficient way.
“The debt instruments on the stock market also provide an efficient way to raise capital due to the low cost of raising capital achieved through public listing,” he said.
The MSE’s debt Platform was introduced in 2010 after considering the possibility that some entities might not be willing to bring in shareholders in their companies.
Lately, the Treasury has used the MSE to raise capital for development projects. Similarly, MyBucks Banking Corporation used the same platform to raise funds for the bank’s growing borrower’s appetite.
Last week, Treasury listed on the MSE 21 debt instruments with a nominal value of K1.1 trillion.
Meanwhile, there are 62 debt securities which include one corporate bond issued by MyBucks, three development bonds issued by the Malawi government and the rest being treasury notes
