Letshego Ghana Raises GH¢ 100 Million in Oversubscribed Bond Issue, Strengthens Local Capital Market Presence”

Letshego Ghana Savings and Loans Plc has successfully listed its GH¢100 million Senior Unsecured Dual Bond Offer on the Ghana Fixed Income Market, marking its second issuance this year under its expanded GH¢500 million Medium-Term Note Programme.

This achievement underscores the company’s commitment to diversifying its funding sources and offering alternative investment options to the local debt capital market. With this latest issuance, Letshego Ghana has raised a total of GH¢200 million in 2024, having previously secured GH¢ 100 million in March. These bond issuance should enable the company to lend out more money.

The bond issuance generated significant investor interest, with total bids amounting to GH¢131 million, reflecting an oversubscription rate of 1.31 times. The 3-year fixed rate note was priced at 22.50%, while the 4-year floating rate note was set at the 182-day Treasury bill rate plus a margin of 100 basis points. The success of this issuance reaffirms Letshego Ghana’s status as a trusted corporate bond issuer in Ghana’s capital market.

Nii Amankra Tetteh, Country Chief Executive Officer of Letshego Ghana, commented on the bond issuance, stating, “We would like to express our gratitude to our investors for their continued confidence and trust in the Letshego team. This fresh injection of funds will allow us to continue our strategy of expanding access to inclusive financial solutions across the country. We are deeply appreciative of the ongoing support from our investors, who remain essential partners in our mission to improve lives in Ghana.”

Stanbic Bank Ghana Limited and Black Star Brokerage Limited acted as joint lead arrangers and co-sponsoring brokers for the bond issue.

Letshego Ghana Savings and Loans PLC (“Letshego Ghana”) is a leading savings and loans company in Ghana’s Non-Bank Financial Institutions sector licensed by the Bank of Ghana to provide financial services. Letshego Ghana was established in 2010 under the name African Financial Services (GH) Limited, a subsidiary of the AFB Group, and later rebranded as African Finance Business Ghana Limited (“AFB Ghana”) in 2013.

The Company has since grown steadily to a staff complement of over 120 employees, spread across 16 outlets and serving over five (5) million customers through strategic partnerships, innovative technology, and digital delivery channels.Letshego Ghana raised GHS 100 million in an oversubscribed bond issue, boosting its funding and strengthening its position in Ghana’s capital market.

Source:thehighstreetjournal.com