Payroll lenders, afb Ghana Plc has officially listed some bonds on the Ghana Alternate Exchange (GAX) of the Ghana Stock Exchange, raising 38 million cedis after offering bonds of 30 million cedis.
This follows a successful offer launch last month in an attempt to raise 100 million cedis from the market.
The company’s bond listing on the GAX saw a 30% over-subscription
It also received a long term investment grade rating of BBB from the global credit rating company.
Managing Director of afb Ghana, Arnold Parker, in an interview with Citi Business News expressed satisfaction with the successful completion of the listing and thanked investors for showing good faith and trust in afb’s business strategy and also future growth potential.
“After months of preparation, regulatory engagements and investor roadshows, we are listing what will now become Ghana’s first rated corporate bond. This listing is a celebrated achievement of the company’s efforts to remain a sustainable business. The first tranche will be used to pay off the USD debt owed to the company’s offshore counterparts,” he said.
He explained that the company, about a year ago, set out to stabilize its balance sheet and eliminate its foreign exchange risks, as they were ‘bleeding heavily’ from the depreciation of the Ghana cedi and foreign exchange losses eroded significant portions of its net worth.
The decision to list on the Ghana Stock Exchange was to create an avenue for the company to expand and list its corporate bond programme in order to salvage the fortunes of the company.
Meanwhile the Managing Director of the Ghana Stock Exchange Kofi Yamoah has urged the private sector to take advantage of the current interest from investors to tap the capital markets to finance their projects.
“The increased attempts by companies to raise fresh funds through listing of bonds were an attestation that the Ghanaian capital market had picked up. I urged the private sector and the Government of Ghana to take advantage of the current interest from investors to tap into the capital markets to finance their projects.”
By: Norvan Acquah – Hayford/citifmonline.com/Ghana