Letshego Africa Holdings has fully repaid its P483 million bridge facility from the Botswana Public Officers Pension Fund (BPOPF), ending a shareholder-backed funding arrangement used to support the pan-African microfinancier’s short-term liquidity.
Letshego said it repaid the facility, together with all accrued interest, on September 29, 2026, the loan's maturity date. No principal or interest remains outstanding under the facility.
Shareholders approved the facility in 2025, and the company disclosed it in its August 4, 2025 circular. BPOPF, as a material shareholder in Letshego, provided the facility, making the transaction a related-party transaction under the Botswana Stock Exchange Listings Requirements.
The shareholder circular contemplated bridge funding of up to P483 million, forming part of Letshego’s short-term liquidity and funding arrangements while management pursued broader initiatives to strengthen the group’s balance sheet and long-term capital position.
The funding came as Letshego worked through liquidity pressures linked to weak performance in Botswana’s diamond sector, reduced liquidity in the domestic bond market, delayed remittances from subsidiaries and lower dividend inflows following losses recorded in 2023 and 2024.
The company received shareholder approval for the BPOPF transaction in August 2025, with more than 99% of eligible shares voting in support of the facility. BPOPF did not participate in the vote because it is a major shareholder.
The facility was intended as bridge financing rather than additional permanent leverage, with Letshego previously indicating that the proceeds would be used to refinance existing obligations.
Alongside the facility, the company has pursued longer-term measures to strengthen its financial position, including potential restructuring of its East and West African operations, efforts to repatriate dividends, and continued cost rationalisation.
With the BPOPF facility now fully settled, Letshego said it remains focused on strengthening its capital position and balance sheet, improving funding resilience and executing its strategic priorities.