Letshego Africa Holdings, a Botswana-based financial services group listed on the Botswana Stock Exchange, has announced a BWP800 million ($58 million) rights offer, fully underwritten by its largest shareholder, the Botswana Public Officers Pension Fund, to strengthen its balance sheet and reposition its regional operations.

In a disclosure released this month, Letshego said it would issue 1.096 billion new ordinary shares at BWP0.73 each, offering eligible shareholders approximately one new share for every 1.985 shares held. The offer price represents a 13.1% discount to the 30-day volume-weighted average trading price.

Debt reduction drives capital raise

BPOPF, which holds approximately 37.2% of Letshego’s issued shares, has committed to underwrite the capital raise fully, providing funding certainty as the lender implements its strategic restructuring.

Letshego plans to use the proceeds primarily to reduce debt at the holding-company level, settle certain shareholder obligations and cover transaction-related costs. The additional capital is also expected to support investment in priority markets, improve funding resilience and strengthen capital efficiency.

The rights offer forms part of a broader restructuring that includes the proposed sale of five businesses in Ghana, Tanzania, Rwanda, Nigeria and Uganda. Shareholders approved the disposals on June 19, 2026, as the group moves to reduce exposure to volatile markets and concentrate resources on its remaining operations.

Retained markets deliver stronger profits

Following the proposed disposals, Letshego’s core regional portfolio will comprise Botswana, Namibia, Mozambique, Lesotho, Kenya and Eswatini.

The continuing operations recorded a 362% increase in profit to BWP284 million ($20.56 million) in 2025, while net impairments declined 77% and the loan-loss ratio improved to 1%, according to the company.

Letshego is also seeking to reduce reliance on expensive wholesale borrowing by expanding deposit-led funding. Customer deposits increased 64% to BWP3.5 billion ($253.37 million), while deposits from continuing operations rose 43% to BWP2.24 billion ($162.15 million). Chief Executive Officer Reinette van der Merwe said the proposed rights issue would strengthen the group’s capital base and support its next phase of development.

BPOPF’s full underwriting, she added, reflects institutional support for a more focused business and its long-term potential to deliver sustainable returns. The group’s strategy includes tighter credit underwriting, improved operating efficiency and greater focus on markets with more stable earnings potential.

Letshego outlines long-term profitability targets

Hitesh Anadkat is one of the top shareholders in Letshego. The Malawian banking mogul holds a nearly 3% stake in Letshego, making him the largest private shareholder. Anadkat’s investment portfolio extends beyond Letshego; he holds stakes in Telekom Networks Malawi and is the founder of Mauritius-based FMB Capital Holdings, Malawi’s pioneering bank.

Letshego’s long-term targets include a return on assets of 3% to 5%, return on equity of 20% to 25%, a cost-to-income ratio of 40% to 45% and a debt-to-equity ratio below 100%. The targets are forward-looking and are not guarantees of future performance.

The rights offer is scheduled to open on October 23 and close on November 6, 2026, with trading in the new shares expected to begin on the Botswana Stock Exchange on November 20.

The new shares will rank equally with existing ordinary shares, including voting and dividend rights. Shareholders are advised to consult the offer circular for eligibility requirements and participation procedures.