Stanbic Bank is joint arranger for Letshego Ghana's GH¢500 million bond programme

Ghana’s foremost investment bank, Stanbic Bank, has played a key role in arranging for Letshego’s newly established and expanded GHS 500 million bond programme. The programme, which has been described as a milestone in the journey of Letshego Ghana Savings & Loans, established the company as a recognized stakeholder in Ghana’s domestic capital market.

Head of Investment Banking at Stanbic Bank Ghana, Kobby Bentsi-Enchill, who represented the bank at the issuance ceremony spoke about the importance of trust as a fundamental element of the financial industry. He said, “Permit me to highlight a fundamental pillar of our industry: Trust.

In the finance world, particularly in the business of lending and borrowing, trust serves as the cornerstone of every interaction with all stakeholders, from clients to investors. It underpins every deal, every decision, shaping the very essence of our existence. Trust, however, suffered a catastrophic integrity deficit in our markets following episodes of 2022 culminating in an undesired debt exchange in 2023.”

“As such, for Letshego Ghana to achieve an oversubscription in the dual offer, raising GHS100 million in 2 tranches across various investor groups including commercial banks and insurance companies, is a testament to the trust investors have reposed in the Issuer,” he continued.

Mr. Bentsi-Enchill also spoke on the performance of the bond issuance, describing it as impressive. He noted that, “Despite the challenging macroeconomic conditions prevailing at the time of issuance, characterized by a heightened interest rate environment, the offer garnered an impressive response from a diverse spectrum of investors. This resounding success reaffirms Letshego Ghana’s standing as a trusted and reliable corporate bond issuer within the Ghanaian debt capital markets. It also underscores the growing significance of domestic capital markets as a viable alternative funding avenue for corporate entities.”

He added, “The competitive pricing achieved in both series at a time when interest rates on traditional commercial credit facilities hovered around an average of 35% is further testament that the domestic capital markets remain a viable and sustainable funding avenue that businesses should critically explore in their pursuit of funding alternatives.”

Letshego Ghana’s Dual Offer achieved tremendous success, which saw the Issuer raise a 2-year fixed rate note at competitive pricing of 22 percent and a 4-year floating rate note at an 182-day treasury bill plus a premium of 1 percent. These two issuances represent the first and second series of notes issued under the newly established and expanded GHS 500 million Medium Term Notes Programme, marking Letshego Ghana’s return to the debt capital market for funding since 2021.