Botswana Stock Exchange Limited (BSEL) CEO, Thapelo Tsheole said being a recognized stock exchange by the United Kingdom’s Her Majesty’s Revenue and Customs (HMRC) is a “critical milestone” for the local bourse which is in pursuit of an “internationalization strategy.”
The BSEL released a statement shortly after its confirmation from the UK which states that the HMRC has designated the local bourse as a ‘Recognized Stock Exchange’ with eefect from 8 October 2018. A “Recognized Stock Exchange” is defined as any market of a recognised investment exchange which is for the time being designated as a recognized stock exchange by an order made by the Commissioner for Her Majesty’s Revenue and Customs; and any market outside the United Kingdom which is for the time being so designated.
According to the UK Government website, the term ‘recognised stock exchange’ occurs throughout the Taxes Acts and in various tax regulations. For example, said the UK website, it is used in the definition of investments which may be held in Individual Savings Accounts and in the qualifying criteria for the quoted Eurobond exemption. Recognised stock exchange legislation is found under S1005 Income Tax Act (ITA) 2007, said the UK government.
HMRC will consider the designation of a stock exchange as a recognised stock exchange under S1005 ITA 2007 on receipt of a request made by a stock exchange, according to UK. The fact that a particular exchange is not recognized may simply mean that recognition has not been requested, said the UK government website.
“The exchange currently operates the following markets: Main Board, Venture Capital Market Board, Exchange Traded Funds Board, Government and Quasi Government Bonds Board, Corporate Bonds Board, OTC Board and ETF Board. Shares and securities admitted to trading on any of those markets will not meet HMRC definition of 'listed'” said notes about BSEL by the British government website.
In this recent endeavor, BSEL has joined the touted to be progressive stock exchanges, the Stock Exchange of Mauritius (SEM) and the Johannesburg Stock Exchange (JSE). SEM is the first Pan-African Sovereign Bond ETF, namely the African Domestic Bond Fund (ADBF). This listing confirms the attractiveness of SEM as a multi-currency (USD, EURO, GBP, ZAR, MUR) capital-raising, listing and trading platform for African issuers. The JSE is the oldest existing and largest stock exchange in Africa.
It is situated at the corner of Maude Street and Gwen Lane in Sandton, Johannesburg, South Africa. Tsheole explained that to be a Recognized Stock Exchange comes as a result of undergoing a comprehensive application process that ensures that the BSEL meets the rigorous requirements outlined by HMRC for one to be designated as a “Recognised Stock Exchange”
“Such a recognition carries confidence signals to investors and appropriately positions the BSEL to continually attract investments from UK investors as the UK Income Tax Act makes provisions for securities which are listed or dealt in on a recognised stock exchange,” said Tsheole. Tsheole further added that The BSEL has been undertaking various significant initiatives to improve its global competitiveness and ultimately that of Botswana’s financial markets.
He said the calibre of issuers BSEL has been able to attract such as the triple A-rated International Finance Corporation (IFC), the Dollar denominated debt instrument issued in 2017, the world-class IT infrastructure they have in place, the market development initiatives they are pursuing to attract companies and investors, the diversity of products on the Exchange, the promotion of a conducive regulatory environment, and most importantly the demutualisation of the exchange-are some of the critical considerations that directly contributed to the Exchange attaining this recognition. In the five year two Strategic Plan which started in 2017 and will end in 2021, the BSEL, the BSEL thrives to improve the breadth and depth of the market, as well as adopt international best practices.
This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.
“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.
Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.
A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.
Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.
A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.
Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.
In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.
The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.
In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.
Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.
The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”
In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.
Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.
The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.