How the secondary market for Die MOS Bond works

After its successful issuance on Mesh.trade in April 2024, Die MOS 10Y Prime +2% Floating Rate Bond made its first quarterly coupon payment to investors at the end of July. And if you missed out on subscribing for this asset during its primary market issuance window, you have a limited opportunity to purchase it now on the Mesh secondary market.

Think of it as your second shot at purchasing Die MOS Bond notes. A secondary market is a space for investors to buy and sell assets amongst each other. Importantly, these trades take place between investors; the issuer is not issuing any new bond notes. 

In the case of Die MOS 10Y Prime+2% Floating Rate Bond, the returns are the same as they were at their issuance: South Africa’s prime rate plus 2%, or 13.75% (based on the prime rate in August 2024). This is a 10-year bond, so there are still many coupon payments left in this asset’s lifetime. 

Participating in the secondary market is easy. To invest in Die MOS Bond, you’ll need to open a Mesh account, fund your account, and then place a Buy Order on the Bond’s Asset Detail page. The prices for buying and selling are calculated in real time and are clearly visible on Mesh’s Smart Asset Financial Exchange. 

When you click on the “Place Buy Order” button, a pop-up window will open, allowing you to indicate how many notes you wish to buy. Remember that investors must subscribe to whole numbers of bond notes or tokens (valued at approximately R5 000 each).

Die MOS 10Y Prime+2% Floating Rate Bond was originally issued by MOS Uitreiker, a wholly owned subsidiary of Die MOS Inisiatief, a private company established by the Trust for Afrikaans Education (TAO) to create a network of Afrikaans medium schools that provide quality education to learners from early childhood development to Grade 12. These schools use innovative teaching methodologies to create inclusive and affordable learning environments.

This Smart Asset is low-risk investment, underwritten and guaranteed by the Trust vir Afrikaanse Kuns, Kultuur en Erfenis (“TAKKE”), so in the unlikely case of Die MOS being unable to fulfill its obligations, TAKKE is legally obliged to cover those payments within a specified timeframe. It is also an opportunity to own a piece of history: this is the first tokenised corporate bond in Africa, made possible through Mesh’s blockchain-based, Finance 3.0 ecosystem