Local bourse eagerly anticipates GHS 1bn issuance by corporates on capital market
The Ghana Stock Exchange (GSE) is eagerly anticipating the issuance of corporate institutions to the tune of GHS 1 billion on the exchange.
The anticipated issuances follow the raising of some GHS 275m in capital by companies such as Kasapreko, Letshego, and Izwe just four months into the year.
“Corporate issuances are looking up: Kasapreko Plc, Letshego Ghana and IZWE have raised GHS 275 million in debt capital. Other companies plan to raise over GHS1 billion on the equities market this year,” said Managing Director of the GSE, Abena Amoah during the launch of the Commercial Paper Market.
Letshego Ghana Savings and Loans Plc last month, successfully listed its GHS 100 million local currency bond on the local bourse.
The listing of the GHS 100 million bond was the first issuance under Letshego Ghana’s expanded GHS 500 million Medium-Term Note Programme.
Two (2) months prior to the listing of the Letshego Ghana GHS 100 million local currency bond, Kasapreko listed Tranche 1 and Tranche 2 of its GHS 600m note on the Fixed Income Market of the GSE which witnessed 100% subscription by investors.
The Tranche 1 & 2 listing by Kasapreko was worth GHS 150m and reflected high investor appetite for the company’s debt issuance given the high coupon rate of 26%.
Izwe within the review period, listed the remaining GHS 25m debt capital.
Aside from the anticipation of the GHS 1bn in debt issuances by corporate bodies for this year, the GSE is expecting listings worth $2bn over the next three years.
According to the Chief Executive Officer (CEO) of the Minerals Commission, Martin Ayisi, the Commission is expectant of the listing of shares of mining companies worth $2 billion on the Ghana Stock Exchange (GSE) in the next three years.
Making the assertion during the secondary listing of Atlantic Lithium on the GSE on May 13, 2024, Mr Ayisi quipped talks are currently ongoing with some mining firms to list on the local bourse.
“The next three years will be the best years in Ghana and for the GSE. We are expecting the listing of some mineral projects which are mainly gold mining projects worth $2 billion on the GSE. We are currently in talks with these mining firms to list on the Stock Exchange,” he quipped.
Meanwhile, the local bourse has launched the much anticipated Commercial Paper Market aimed at providing short-term financing to businesses.
The Commercial Paper Market seeks to augment the depth and liquidity of Ghana’s securities landscape, ultimately propelling the nation’s economic development.
The new market offers an avenue for private pension funds, keen to explore investment diversification, and companies seeking alternative sources of short-term finance beyond conventional banking channels.
By bridging the gap between investors and companies in need of such financing, the Commercial Paper Market endeavors to usher in a new era of financial flexibility and risk reduction.
The Commercial Paper has a tenure of 270 days and can be issued at a discount to the face value or be issued at an interest rate.
