GSE MD lauds GHS 100m bond listing by Letshego Ghana
Managing Director of the Ghana Stock Exchange (GSE), Abena Amoah, has commended Letshego Ghana Savings and Loans Plc for successfully listing its GHS 100 million local currency bond on the local bourse.
The listing of the GHS 100 million bond is the first issuance under Letshego Ghana’s expanded GHS 500 million Medium-Term Note Programme.
Letshego Ghana initially in May 2015, registered a GHS 100 million note programme on the GSE which was increased to GHS 300 million by April 2018 and further increased to GHS 500 million this year.
Speaking at the bond listing ceremony on Tuesday, April 16, 2024, Ms Abena Amoah quipped the GHS 100 million bond issuance by Letshego Ghana testifies to the resilience of the company, which despite a difficult economic environment, continues to support close to six (6) million Ghanaians with loans.
“I congratulate Letshego Ghana Savings and Loans PLC on this significant achievement. This listing is not just about financial instruments but about fostering growth, innovation, and prosperity in our financial ecosystem. The Ghana Stock Exchange is proud to have been able to provide a competitive platform to raise the capital needed to meet Ghanaians’ goals and aspirations,” she averred.
“With 29 issued tranches and diverse investor participation, Letshego’s Note Program exemplifies the market’s potential for growth, inclusivity, and wealth creation. Letshego’s listing adds depth and diversity to the market, attracting new investors, and enhancing liquidity. This paves the way for more companies to explore capital-raising opportunities and contribute to the overall vibrancy of the market,” she added.
Touching on the GSE’s bid to diversify its markets and product offering this year, Ms Amoah reiterated the imminent launch of the Commercial Paper Market, coupled with new products and services such as Securities Lending and Borrowing, Asset-backed Securities, Margin Trading, Market Making, and the updated Underwriting and Issuing House Rules.
Asserting that, the new products and services underscore the GSE’s commitment to a dynamic and resilient financial ecosystem.
“These regulatory advancements, alongside the GFIM’s recovery, signify a strategic leap towards enhancing market depth, liquidity, and investor participation. These strategic measures not only empower investors with a spectrum of opportunities but also position Ghana as a regional hub for innovative financial solutions and sustainable economic growth. Together, we are poised to chart a prosperous course for the Exchange, fostering lasting value and prosperity for all stakeholders involved,” she added.
Despite the challenging macroeconomic conditions characterized by a relatively high-interest rate environment, Letshego Ghana’s bond garnered an impressive response from a diverse pool of investors, including banks, pension funds, asset managers, and insurance schemes.
The issuance secured approximately ninety-four (94) bids, with around 16% from new investors. The order book peaked at GHS141 million at offer close, positively reflecting an oversubscription of 1.41 times.
Overall, the success of this issuance reaffirms Letshego Ghana’s standing as a trusted corporate bond issuer in Ghana’s active capital market. It also highlights the growing significance of domestic capital markets as an alternative funding source for corporate issuers.
The bond transaction was priced at 22% for the 2-year fixed rate note, while the 4-year floating rate note was priced at the 182-day T-bill rate plus a margin of 100 basis points.
