Letshego Poised For Second GHS 100 Million Bond Issuance Under GHS 500 Million Medium Term Note Programme In Q3 2024
Letshego Ghana is set to issue a second GHS 100 million bond under its expanded GHS 500 million medium-term note programme by the close of Q3 2024.
This was announced by the leadership of Letshego Ghana during the company’s presentation at the Fact Behind The Figures event hosted by the Ghana Stock Exchange (GSE) on Wednesday, July 31, 2024.
The current outstanding value of Letshego Ghana’s bond programme stands at GHS 230 million as of June 2024. With some GHS 75.9 million encompassing Tranches 21, 23, and 26, scheduled for redemption in Q3 2024, the company has some GHS 270 million remaining for future issuances under the note programme.
According to Letshego Ghana, proceeds from the bond issuance are channeled towards underwriting new and existing products to bolster balance sheet growth as well as fund working capital and liquidity management activities.
Successful Inaugural Issuance
In April 2024, Letshego Ghana successfully issued its first GHS 100 million bond, securing approximately 94 bids, with 16% from new investors.
The order book peaked at GHS 141 million, representing an oversubscription of 1.41 times. The bond was priced at 22% for the 2-year fixed-rate note, while the 4-year floating rate note was set at the then 182-day T-bill rate plus a margin of 100 basis points.
Letshego Ghana originally registered a GHS 100 million note programme on the GSE in May 2015. This was subsequently increased to GHS 300 million by April 2018 and further expanded to GHS 500 million this year, underscoring the company’s growth and increasing market confidence.
Financial Resilience Amidst Challenges
Despite significant macroeconomic headwinds, Letshego Ghana has demonstrated robust growth and resilience this year.
For the first half of 2024, the company achieved a 218% year-on-year increase in operating income, driven by a strategic transition to a balanced portfolio mix of Deduction-at-Source (DAS) and Mobile Lending.
Chief Executive Officer of Letshego Ghana, Nii Amankra Tetteh, speaking on the first half-year performance of the company stated, “Our performance in the first half-year is a testament to the resilience and adaptability of our business model. We have successfully navigated a challenging macroeconomic environment while delivering strong financial results and making significant strides in our strategic initiatives. We are committed to continuing this trajectory, driving innovation, and delivering value to our customers, shareholders, and the broader community.”
In Q1 2024, the company reported a net interest income of GHS 89 million and a net profit of GHS 31.3 million.
Total assets reached GHS 1.65 billion, a substantial 41% increase from GHS 1.16 billion in Q1 2023. Net loans and advances to customers were GHS 1.02 billion, with customer deposits soaring to GHS 247 million from GHS 21 million in the same period.
Strategic Outlook
Mr Nii Amankra Tetteh speaking further at the Facts Behind The Figures, emphasized the company’s ongoing commitment to strategic priorities, focusing on capital efficiency, digitization, and product expansion.
Ongoing key initiatives by Letshego Ghana include improving the cost-to-income ratio, investing in technology and platform capabilities, launching new products, and strengthening partnerships while exploring new opportunities.
Letshego Ghana’s strategic positioning and financial performance underscore its resilience and adaptability, promising continued value delivery to its stakeholders.
