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Oliver Kazunga, Senior Business Reporter
THE country’s largest mobile telecoms operator, Econet Wireless Zimbabwe, has redeemed debentures worth US$14,8 million equivalent to an estimated $1,27 billion.

Last month, the telecoms giant announced that it had given investors an opportunity for early redemption of over 1,1 billion debentures  it issued in 2017 to raise funds to clear its external debt.

The debts included a US$300 million syndicated loan secured after 2009 for network expansion and the creditors included Ericson, Industrial Development Bank of South Africa, AfreximBank and China Development Bank.

In an update on early redemption of the debentures, Econet indicated that a total of 255 debenture holders representing 24,57 percent of the total figure, opted for early redemption while 783 did not.

All the debentures amounting to 260 722 325 were accepted for early redemption while 906 184 293 were not put for early redemption.

“All offers for early redemption have been accepted by the company. Payment will be made in full on or before 30 September 2021.

“The amount to be paid falls within the threshold approved by the Reserve Bank of Zimbabwe,” it said.

Econet has announced that it has initiated for early redemption spread over time as this would give it an opportunity to manage its cash flows over an extended period of time.

It is also hoped that early redemption would allow the company to consolidate its balance sheet by reducing foreign currency exposure and minimise potential future exchange losses from a weakening Zimbabwe dollar.

In addition, the firm contends that early redemption gives the Reserve Bank, which has insisted on an extended period, latitude to manage liquidity constraints given the huge pay out of US$72 million (including interest) on maturity.

Meanwhile, Econet on its trading update for the quarter ended May 31, noted that in an increasingly digital world, demand for its  products and services remains high and the telecoms giant was assisting in bridging the digital divide and bringing a new way of living into society.

“Digitisation is no longer about just efficiency but is now a necessity as we live through the new realities that have been ushered in by the Covid-19 global pandemic.

“We are pleased to report that despite the lack of adequate investment due to challenges in accessing foreign currency our connectivity has facilitated educational, social, economic and other opportunities to our customers.”

It said network connectivity plays a critical role in building socio-economic resilience for the country and thus the company remains committed to providing digital solutions to its customers and stakeholders.

During the period under review, data and voice traffic volumes increased by  77 percent and 25 percent respectively from comparable prior year period.

“Although we have been able to accommodate this capacity growth, it has put a lot of strain on our network.

“To date, investment in network infrastructure has positioned us to be the digital connectivity partner of choice for remote business operations, humanitarian and social connections.

“However, more investment is necessary to allow us to meet the increasing needs of our customers,” it said.

Econet said it remains as committed as ever to provide faster speeds and wider coverage in line with the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) Covid-19 relief programme through deployment of additional LTE sites as well as accessing additional 3G spectrum.

“We are committed to sustainable pricing that takes into account the realities of the prevailing economic environment, whilst balancing affordability for the customer and the sustainability of the business,” it said. — @okazunga