Botswana Housing Corporation has raised P285 million through a private placement under its medium-term note programme, adding fresh funding as the state-owned developer manages maturing debt and an expanding construction pipeline.
The transaction, completed in December 2025, consisted of two unsecured tranches. A P100 million note matures in 2032 and carries a fixed coupon of 15 percent, while a P185 million tranche due in 2030 offers a 14.5 percent coupon. Following the placement, total outstanding notes increased to P685 million from P400 million previously.
The fundraising coincided with pressure on the balance sheet. A listed bond matured in December 2025 and 76 percent of BHC’s P529.3 million borrowings were classified as current liabilities, tightening liquidity. Although trade receivables improved on stronger collections, cash and cash equivalents declined 44 percent to P405.5 million in the six months to September 2025, compared with the March 2024 year-end.
Proceeds from the placement are supporting refinancing requirements alongside ongoing project delivery. BHC is advancing developments in Phakalane, Gerald Estates in Francistown, Kazungula, Lobatse and Jwaneng, including contract housing for police and prison officers under the Employee Housing Initiative. A central pillar of the strategy is the Bonno National Housing Programme, which targets affordable units for low- and middle-income earners, with homes under construction in Gaborone Block 7 forming part of the national rollout.
Construction momentum has lifted inventories to more than P828 million as units approach completion. Financial performance has improved, with BHC returning to profitability in the first half of the 2025/26 financial year. Profit after tax rose to P32.3 million for the six months to 30 September 2025 from P10.8 million earlier.