Press Statement: Kasapreko/Consolidated Bank Ghana LTD (CBG) Series 1 GHS600 million Note
Good afternoon to you our friends from the media, it is with great pleasure and excitement that I deliver this address to announce the partnership between Consolidated Bank Ghana LTD. (CBG) and Kasapreko Co. Plc. This is in recognition of the official listing of the Series 1 GHS600 million Note for Kasapreko Co. Plc, which deserves celebration.
Exciting because Consolidated Bank Ghana LTD (CBG) is at the forefront of developing this new and exciting market chapter.
This is another addition to the issuances on the corporate bond market and I am confident that it will be the spark that ignites growth in this market segment.
This transaction is important for many reasons; it is the first time an indigenous Ghanaian Bank has worked with an indigenous manufacturing company to raise funding from local pension funds in the public market.
CBG worked with key stakeholders in the financial industry to raise medium-term funding at a cost significantly lower than the Ghana Reference Rate (GRR) for borrowing in this market.
As key players in the financial ecosystem, CBG had a major role to play in driving this agenda and the first step was to break from the past and jettison the notion that the risks are elevated in the SME segment.
The risks may be elevated, but our business is the business of managing risk, not fleeing from risks. As the environment changes, it is incumbent on us to reexamine our established paradigms, question our perception of risk, and develop financing structures that meet the evolving demands of our customers.
Transaction Summary:
This issuance is structured as a three-year senior unsecured Note, with a floating rate coupon and paying principal at maturity, which will be issued in tranches to refinance expensive short-term debt, support working capital, and finance capital expenditure.
Listing on the Ghana Stock Exchange ensures price discovery for noteholders and potential buyers and is another positive step towards deepening our financial markets.
For Kasapreko Co Plc, this issuance is the first step towards diversifying the funding mix and optimizing the maturity structure of its debt funding. I am happy to note that the issuance has received strong support from the investor community and is fully subscribed at this point.
About CBG
With this transaction, CBG continues to execute its strategy of providing innovative funding solutions, whilst sending out a strong signal that our syndications and markets desk business is open for business.
Our mission has always been to serve and provide a differentiated banking experience to our customers, innovating around their pain points and delivering value to them. We are particularly focused on local corporates and small businesses, providing them with critical solutions in lending, cash management, and trade finance to grow their business.
Our team of dedicated professionals embodies the values of excellence, innovation integrity, and teamwork. We are here not just to close transactions, but to build relationships, to listen, and to understand your needs so that we can better serve you.
Today, we reiterate our commitment to the Ghanaian entrepreneur and reaffirm our pledge to stand with you through the good and the bad times.
But beyond that, this transaction is a testament to our overriding ambition to make an impact in the communities in which we operate. At the core of our business philosophy is the idea that our lending must be economically impactful, and Kasapreko Co. Plc is an example of this wholesome impact.
The Company directly employs 1200 people and indirectly provides livelihood for a larger number through its value chain. With an export footprint spanning nine (9) countries in West Africa; two in Southern Africa and one in East Africa, Kasapreko Co. Plc is a major foreign exchange earner and a leader in realizing the vision of AFCTA. We are therefore honoured to be a part of such a company, that is making an impact on the local economy.
I would like to conclude, by expressing my gratitude to the team who have worked tirelessly to pull off this transaction. To the Kasapreko Team and Team CBG, I say “Ayekoo”. To my Board Chairman Nana Abra Appiah and the Board of CBG, I am eternally grateful for your guidance and support as we work towards building Ghana’s most trusted Bank.
God bless us all, God bless our homeland Ghana, and make our nation great and strong.
Thank You.
