CBG, Kasapreko PLC collaborate to float GH¢600 million on Ghana Fixed Income Market

Consolidated Bank Ghana Limited (CGB) has entered into a landmark collaboration with indigenous manufacturer of herbal based alcoholic and non-alcoholic products, Kasapreko PLC.

As part of the collaboration, CBG will serve as the lead arranger of Kasapreko’s GH¢600 million notes programme listing on the Ghana Fixed Income Market of the Ghana Stock Exchange.

The move which was launched on the floor of the Ghana Stock Exchange on Monday February 19, 2024 seeks to ensure that indigenous businesses can collaborate towards various sources of financing to boost their growth and value addition.

Under the programme, Kasapreko PLC will list Tranche 01 consisting of GH¢150 million under a three-year senior unsecured fixed rate note with an issue date of January 29, 2024 with a maturity date set for January 29, 2027.

The coupon rate for Tranche 01 is pegged at 26 percent while the coupon payment cycle will be bi-annual and fixed for July 26 and January 29 respectively.

Managing Director of CBG, Daniel Addo speaking with journalists after the launch emphasized the importance of indigenous businesses and local corporates teaming up to tap into key funding sources to drive growth and spark economic revolution.

“This collaboration seeks to show that there are other sources of funding in this country apart from the typical bank lending that organizations are used to and it is important that economic actors, corporates and players in the industry tap into these funding sources and CBG is leading the way in driving this agenda,” Daniel Addo told journalists at a press briefing in Accra.

“I’m positive that there will be major spill offs from this and Kasapreko will have the needed capital to first of all grow its business and get the needed working capital to satisfy its customer base. At the end of the day, we will be able to put together a structure around the funding of its balance that will make economic sense for the company,” he added.

The CBG MD reiterated that the company remains committed to supporting the growth of local businesses and corporates with the idea of championing innovation to boost economic growth.

Meanwhile, Managing Director of Kasapreko PLC, Richard Adjei on his part described the listing as a significant milestone for a manufacturing company to raise a corporate bond in Ghana.

He also expressed gratitude and confidence shown on the market while urging businesses to seek advisory services from CBG on ways or sources for additional capital.

“CBG has charted a niche for local corporates and Ghanaian businesses to find available sources of funding or capital to boost their businesses and I want to laud them for driving this initiative. We are confident that this bond issuance will enable us to accelerate our growth trajectory, further cementing our position as a beacon of excellence within the beverage industry,” Adjei concluded.

MA/NOQ

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