BHC to redeem BSE-listed P260m notes

Botswana Housing Corporation will redeem the BHC017 Unsecured Notes, having an aggregate nominal amount of BWP 286,000,000 and maturing on 10 December 2017. The redemption will occur on 10 December 2017 as per the redemption provisions contained in the Pricing Supplement issued in respect of the BHC017 Notes dated 10 December 2010.

BHC used the proceeds to build more houses

“The Issuer hereby notifies the Noteholders of the redemption at maturity, as specified in the Pricing Supplement. The Botswana Stock Exchange was notified of the redemption of the BHC017 Notes, and the BHC017 Notes will be delisted as of 10 December 2017.”

BHC advised noteholders that no payment in respect of the redemption of the BHC017 Notes shall be made by the Issuer until 10 days after the date on which the certificate(s) in respect of such Notes have been surrendered to the Transfer Secretaries, where this is still applicable.

Noteholders are accordingly advised to submit their certificates, where such Notes may still be held in certificated form, in respect of BHC017 Notes held by them to the Transfer Secretaries prior to the Redemption Date, it said.

These procedures will not apply to any dematerialised Notes. All Notes which are redeemed shall forthwith be cancelled and cannot be re-issued or re-sold. As at the date of this press announcement, the Issuer, in terms of Section 58, as read with the Seventh Schedule to the Income Tax Act Cap 52:01 of the Laws of Botswana, as amended, is obliged to withhold 15% on all interest payments to non-resident Noteholders.

This is subject to any double-taxation agreement that may be in place between Botswana and the jurisdiction in which the non-resident Noteholder is domiciled, which taxation agreement may allow for a different rate. The Issuer is obliged to withhold 10% on all interest payments to resident Noteholders, save for those resident Noteholders which are exempt from taxation.

This press announcement is published in compliance with the Programme Memorandum dated 15 November 2010 and has been approved by the Botswana Stock Exchange.