Federated Commodities Makes Inaugural GHS 72.5 Million Commercial Paper Issuance on Fixed Income Market
Leading indigenous licensed cocoa buying company, Federated Commodities PLC (FEDCO), has successfully issued GHS 72.5 million worth of Commercial Paper—the first tranche of a GHS 200 million issuance programme—marking a significant milestone for both the company and Ghana’s capital market.
The Commercial Paper has been admitted to the Ghana Fixed Income Market (GFIM), becoming the first instrument to be listed since the official launch of the Commercial Paper Market by the Ghana Stock Exchange (GSE) in 2024.
Speaking at a ceremony to commemorate the listing, Managing Director of Federated Commodities PLC, Maria Adamu-Zibo, highlighted the company’s growth trajectory and commitment to impact-driven investments.
“From a 5.7% market share in 2017/2018, we now command a 10.5% share. International partner resource support has grown from 2.3% to 12% over the same period,” she noted.
She added that over 41,000 of the 70,000 farmers under its network now benefit from FEDCO’s sustainability initiatives, with the company’s initiatives further positively affecting over 400,000 lives nationwide.
“Our joint investments with partners amount to $20 million—over GHS 300 million—in cash and in-kind support for our sourcing communities,” she stated, adding that the company rose to become the third-largest Licensed Buying Company (LBC) in Ghana by the end of the 2021/2022 cocoa season.
FEDCO, according to the MD, is diversifying beyond cocoa into commodity trading, logistics, and food processing. “We’ve set up an 18,000-metric-ton rice mill in Kampung Dari and are establishing a food processing facility to complement it,” she revealed.
Speaking further, she emphasised that the capital raise through the Commercial Paper issuance is more than a financial feat.
“This is a strategic leap, empowering us to leverage rising food prices, expand our impact, and deliver greater value to our farmers, partners, and shareholders,” she said.
“This moment belongs to our tireless staff, district managers, and above all, the farmers who place their faith in us daily,” she added.
The Commercial Paper Market, launched in 2024, aims to provide a transparent, efficient platform for short-term borrowing and lending. The GSE expects the new market segment to deepen capital market activities and offer issuers flexible short-term financing options.
The admission of FEDCO’s paper is expected to serve as a blueprint for other corporate issuers seeking to access short-term capital through the Ghanaian capital market.
The issuance of the Commercial Paper by Federated Commodities PLC was facilitated by First Atlantic Bank Ghana Limited, First Atlantic Brokers Limited, Deloitte Ghana, G.A. Sarpong & Co, Glico General, GCB Bank PLC, Central Securities Depositary (CSD) and Beacon Ratings.
