Asante Gold Secures Approval to Issue GHS 6.29 Billion Bond on Ghana’s Fixed Income Market

Asante Gold Secures Approval to Issue GHS 6.29 Billion Bond on Ghana’s Fixed Income Market

Asante Gold Corporation has received approval from the Securities and Exchange Commission of Ghana and the Ghana Stock Exchange to offer up to GHS 6.29 billion ($400 million) in debt securities on the Ghana Fixed Income Market (GFIM). 

The bond issuance according to Asante Gold in a statement to the SEC and the GSE, will be indexed to the USD/GHS exchange rate, further asserting that prospective investors in the company’s debt securities may include in-country pension funds, commercial banks, high net worth individuals, and international investors.  

“The Ghana Bond Offering is envisaged to be made in Ghanaian Cedis, indexed to the USD/GHS exchange  rate, and admitted on the Ghana Fixed Income Market of the Ghana Stock Exchange. Prospective investors  may include in-country pension funds, commercial banks, high net worth individuals, and international investors. Asante has not entered into any agreements or arrangements in respect of such first tranche,” read parts of the statement.

According to Asante Gold, proceeds from the bond offering will be used for the funding of growth initiatives and operating expenditures at the Bibiani and Chirano mines, acquisition opportunities, and refinancing of the company’s liabilities. 

Commenting on the company’s upcoming bond issuance, Dave Anthony, Asante Gold’s President and CEO quipped, “We are excited to be launching this bond program which would provide Ghanaian investors with a unique opportunity to gain exposure to Asante, as we work to grow Bibiani-Chirano into Africa’s next Tier One  gold district with annual production of more than 500,000 ounces of gold anticipated by 2028.”

“We look forward to updating the market on our progress as part of our broader financing initiative to fund the Company’s growth initiatives and recapitalization of short-term liabilities,” he added. 

IC Securities and Temple Investments will be acting as Joint Lead Arrangers and Transaction Advisers to Asante Gold in respect of the company’s bond offer. 

Asante Gold is a gold exploration, development, and operating company with a high-quality portfolio of projects and mines in Ghana. The company is currently operating the Bibiani and Chirano Gold Mines and continues with detailed technical studies at its Kubi Gold Project.

All mines and exploration projects are located on the prolific Bibiani and Ashanti Gold Belts. The Company is listed on the Canadian  Securities Exchange and the Ghana Stock Exchange.