The Malawi Stock Exchange (MSE) has listed 30 government bonds and treasury notes with a combined value of K1.7 trillion.
The five are development bonds valued at K100 billion while 25 are debt refinancing Treasury Notes worthy K1.59 trillion, bringing the total number of listed debt securities to 84.
The listing will enable secondary trading by investors who participated during the primary auction some months ago.
MSE Chief Executive Officer John Robson Kamanga said the listing of such hefty instruments –in an initiative being facilitated by the Reserve Bank, underscores strong capabilities of the market to raise long-term financing.
“Through these securities, the Reserve Bank is supporting in deepening the Country’s financial market and encouraging the investing public to engage their respective agents, stockbrokers, and/or bankers, as these are eligible for secondary debt market trading on the Malawi Stock Exchange.
“This listing should give a signal to potential debt issuers such as city councils, state-owned enterprises, and the private sector on the ability of the domestic capital market to mobilise resources for various projects,” Kamanga said.
According to Kamanga, the listing also fosters financial inclusion considering that the minimum amount to invest in the listed debt securities through the Malawi Stock Exchange is only K1,000.
In a separate interview, Malawi University of Business and Applied Sciences (MUBAS) based economist Betchani Tchereni described this as long-term borrowing which is cheaper and commendable for the government.
The listing is in line with the Malawi Capital Market Development Plan which seeks to improve access to Malawi capital markets for economic transformation and development, among other objectives.