The Malawi Stock Exchange (MSE) has spoken highly of the capital market following the listing of two government development bonds and 19 Treasury notes with a combined face value of K1.119 trillion.
The bonds and Treasury notes were listed on Monday following a successful raising of the same on its primary market through auctions.
This means that Malawians can now participate in trading of the instruments on the market.
In a statement released on Tuesday, MSE indicates that the listing brings the total number of listed debt securities to 62, with a corporate bond issued by MyBucks Banking Corporation, three development bonds issued by the government while the rest are Treasury notes.
“The listing will provide a secondary market for the debt securities, which is bound to improve liquidity, facilitate price discovery and aid development of a government yield curve. The listing will also foster financial inclusion considering that the minimum amount to invest in the listed debt securities is K1,000,” the statement reads.
MSE Chief Executive Officer John Kamanga said, over the past few years, there has been progress registered on the debt platform which has seen the number of instruments increasing and a few trades registered.
He added that the listing should give a signal to the private sector on the ability of domestic capital markets to mobilise resources for projects they have especially as the economy continues on its recovery path from the impact of the Covid pandemic and the Russia- Ukraine war.
“It has given signals to potential issuers that it is possible to raise capital from the domestic capital markets,” Kamanga said.