By JUDITH NAMUTOWE –

MADISON Finance Company Limited will issue a Medium Term Note Programme (MTNP) worth K400 million on the Lusaka Stock Exchange (LuSE) in five years aimed at growing its loan book.
The company will issue K100 million as first tranche which is expected to be launched tomorrow.
The MTNP, which has since been approved by the Securities and Exchange Commission (SEC) and LuSE, is expected to start trading after six months.
Company managing director Titus Waithaka said the purpose of the issue was to finance growth of the loan book from K250 million to K1 billion.
Hence maintaining the growth momentum the company has experienced in the recent past.
Mr Waithaka made the announcement during the presentation of Madison Financial Services Plc (MFS) half-year results in Lusaka.
“The growth will turn Mfinance into a leading Small and Medium Entrepreneur (SME) Bank by 2017,” Mr Waithaka said.
Mr Waithaka said the financial impact of MTNP was to increase the loan book from K250 million.
He said MFinance would be positioned as market leader and a brand name in SME business, adding that the customer base will grow by more than 300 per cent.
Meanwhile, MFinance posted a growth of 45 per cent in revenue in the period ending June 2015.
During the period under review, MFinance recorded K58,998,248 in the first half of 2015, compared to K40,648,320 recorded over the same in 2014.
Profit before tax recorded growth of K36,105,433 up from K22,430,978 which was recorded over the same period in 2014.
LSA Group of Companies chief financial officer Cindy Chiputa said revenue performance was positive at the back of a 44 per cent growth in the loan.
Ms Chiputa said the loan book grew due to a success in increased funding largely coming from Development Finance Institutions (DFIs) who funded a growth in Micro Small and Medium Enterprises (MSME) financing.
“Operating profit grew due to increased revenue, plus an improved management expense ratio. Financial cost increased due to increased interest rates. However, the increase was countered by the increased revenue,” she said.
Ms Chiputa said that the profit of just about break-even was an improvement from a loss recorded over the same period in 2014.
“However, the net profit could not be met due to extra financing costs in the form of foreign losses of K4.8 million emanating from the foreign denominated preference share capital,” she said.