Business News of 2014-07-18

Leasafric gets US$5 million investment

The West Africa Emerging Markets Growth Fund (WAEMGF) has announced a US$5million investment in Leasafric Ghana Limited (“Leasafric”), a specialist non-bank financial institution that primarily provides finance and operating lease solutions to SMEs and leading corporates in Ghana.

Set up in 1994, the company has established itself as a solid financial services provider offering innovative asset financing solutions to Ghanaian businesses.

This investment comes at a crucial time to shore-up the company’s capital base as per minimum capital guidelines set by the Bank of Ghana, and will allow Leasafric to expand its activities into other economic sectors such as agriculture and oil and gas.

The company has also recently acquired the Hertz car rental franchise for Ghana as another business activity. Leasafric engaged IC Securities (Ghana) Limited as sole Financial Advisor.

Commenting on the investment, J. Mawuli Ababio, Partner, PCM Capital Partners (“PCP”), opined: “The financial services sector is crucial to SME growth and development and our investment gives us an excellent platform to provide growth capital to local companies. We are pleased to partner with C&I Leasing and its respected local partners in this investment”.

According to Alex Mbakogu, Managing Director of Leasafric: “This investment in Leasafric is a testament to the confidence PCM Capital Partners and a lot others have in Leasafric as one of the most profitable, fast-growing non-bank leasing and ancillary services company in Ghana, and will enhance Leasafric’s capacity to do more business … growing our SMEs, fleet services, operating leases and Hertz Rent A Car brand”.

Commenting on the Transaction, Michael Darko, Executive Director of Investment Banking and Head of Financial Advisory at IC Securities (Ghana) Limited said: “We are pleased to have completed this landmark transaction for our client, Leasafric, especially in these challenging times for Ghana’s economy. We believe that Leasafric is the best-positioned leasing company in the country, and look forward to seeing the company operate at the next level with this capital infusion”.

Source: B&FT
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