Subscription is open for the first tokenised bond in Africa
Die MOS 10Y Prime +2% Floating Rate Bond
for more information on investment objectives, repayment terms, to download the Investment Prospectus and place a Buy Order.
Subscription closes 26 April. Place your Buy Order now!
There are a limited number of Notes (tokens) available with this issuance and the subscription window will close on 26 April 2024.
We will notify investors of the allocation of Notes on the first business day after the Closing Date!
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Issued by MOS Uitreiker powered by Mesh.trade - Die MOS 10Y Prime+2% Floating Rate Bond is now open for investment.
The Bond, issued by Die MOS Inisiatief’s wholly owned subsidiary MOS Uitreiker, is open for investment for a limited two-week subscription period, and a minimum investment of R5 000.
With this 10Y Prime+2% Floating Rate Bond, Die MOS aims to raise ZAR 100 million to expand its network of private schools. And over its 10-year term the Bond will pay a quarterly coupon of Prime+2%.
To illustrate what this means for investors, when subscription opened on Thursday 11 April 2024, the Prime rate was 11.75%. This translates into an interest payment of 13.75% payable every quarter to investors, until such time as the Prime rate changes and the interest rate is recalculated.
This rate of return outperforms the current average return on most other asset classes in the market.
Die MOS Bond is fully Underwritten and Guaranteed by the Trust vir Afrikaanse Kuns Kultuur en Erfenis (TAKKE), part of The Dagbreek Trust family.
Underwriting means that the Trust commits to covering any shortfall on the raise, which ensures that the full ZAR 100 million Bond will be Issued on the first business day after subscription closes on 26 April 2024.
The Guarantee means that in the unlikely event that Die MOS can’t cover a coupon payment at any point in time over the 10 year lifetime of the Bond, the Trust will cover these payments to investors.
A first in Africa from Mesh.trade
While the Bond is an investment in the future of education, for Mesh it also represents a major historical first that we are very proud of. It is the first tokenised Bond ever to be issued in Africa, one of a handful to have been issued anywhere in the world.
A tokenised Bond is the same as a traditional Bond, except that it is traded in the form of digital tokens that are issued natively on the blockchain.
At Mesh we call this a “Smart Asset“, a unique digital asset, issued, traded and lifecycle managed, end-to-end, within the Mesh ecosystem. One of the benefits of this new form of Smart Asset, is that it trades in smaller contract sizes than traditional Bonds do, making it more accessible and affordable to a broader range of investors.
The issuance of this Bond on the blockchain through our multi-sided capital markets platform also gives it increased security, direct ownership and expanded liquidity. Tokenised assets in the form of equity and debt instruments are a rapidly growing investment offering due to the significant benefits they offer to both investors and issuers.
The Investment Case
According to research by UNESCO, mother-tongue education greatly improves learning outcomes and academic performance. Teaching a child in their home language has benefits far beyond education; it fosters a connection to their roots, preserves their cultural identity, and empowers them to navigate a diverse world with confidence and pride.
Formed in response to declining access to Afrikaans education in South Africa, Die MOS Inisiatief is a network of private schools that provide sustainable, quality, future-fit mother-tongue education in South Africa, for children aged six months to Grade 12. The group currently has eight physical schools and is looking to add at least 10 more over the 10-year Bond term.
Developments in tokenisation and the blockchain have made it possible for Die MOS Inisiatief, a private business, to issue a simple to access, risk managed and transparent Bond directly to its community of supporters via the Mesh platform, to achieve its growth objectives.
With private school education playing an increasingly important role in South Africa, education groups teaching learners in their mother-tongue present a strong investment opportunity for investors looking to diversify their portfolio and invest in the future success of South African children.
About Mesh
- Mesh is a digital ecosystem for raising capital and trading capital markets assets. It is a multi-sided digital capital markets platform that connects issuers and investors directly to each other in a trusted way, facilitating easy interaction as well as secure, efficient and cost-effective trade.
- Using the best of leading-edge blockchain technology, Mesh has removed many of the traditional barriers to entry, eliminated excessive participation costs, and made capital raising and investing much more efficient for all market participants.
- Mesh offers investors easy access to asset classes that were previously impossible to invest in as individual investors, such as alternative investments and private debt. Die Mos 10Y Prime+2% Floating Rate Bond is a Smart Asset, issued on Mesh, that offers an opportunity for investors to access a private debt investment through a platform designed to open capital markets to all.
What this Bond offers you:
- A yield of Prime+2% : This means that coupon payments will be made quarterly, based on a calculation of the interest due to each individual investor at the prevailing Prime rate +2% - on the date of payment.
- A quality issuer : Die MOS Initiatief has already received its first R40 million from The Dagbreek Trust, signalling its confidence in Die MOS’s mission. Die MOS currently has ten schools which are future fit, highly respected and representative of the lucrative opportunity of the rebounding private education sector.
- Confidence in the platform : Mesh is rooted in the Capital Markets and anchored in the blockchain, offering a secure and transparent investment ecosystem
- An ESG investment : ESG investments hold significant potential to outperform other assets, with 53% of institutional investors agreeing that companies with strong ESG track records generate better returns.
- Reduced fees : Mesh offers the most transparent and cost-effective fees in the market.
How it works
- A Bond is a debt security. It functions in part like a loan, from the investor to the issuer, with a set term and regular interest payments from the issuer. However, unlike a loan, the investor receives the whole of the principal investment back when the Bond matures. Loans pay a component of the principal back with each interest payment. That's why Bonds are recognised as a core part of any well-diversified investment portfolio.
- It’s a fixed-term investment. You commit the full amount upfront, and then you receive interest payments quarterly until the Bond matures and the principal is returned to you. At the end of 10 years, you’ll receive your original investment back in full. This does not mean that you have to invest your money for 10 years - if you want to get your investment back you may sell your notes (tokens) in the secondary market.
- This is a Floating Rate Bond with a term of ten years. That means it pays investors a quarterly coupon of Prime plus 2%, based on the prime interest rate at the time of each payment.
- The Bond has a maturity date of 30 April 2034, and is underwritten and guaranteed by the Trust vir Afrkaanse Kuns, Kultuur en Efenis (TAKKE).
- Die MOS 10Y Prime+2% Floating Rate Bond creates an opportunity for you to enhance your portfolio with a yielding investment instrument, while contributing to the upliftment of Afrikaans education and culture.