July 22, 2015

afb Ghana’s bond listing on GSE successful with a 30% over-subscription

Accra, Ghana, July 22 2015: afb Ghana is pleased to announce the official listing of its bond on the Ghana Stock Exchange (GSE). afb Ghana raised GHS 38 million by offering bonds of GHS 30 million. The issue which received long term ‘investment grade’ rating of ‘BBB’ from GCR (Global Credit Rating) company was over-subscribed by 30%.

Arnold Parker, Managing Director, afb Ghana said on the successful completion of listing, “afb Ghana is extremely satisfied with the efforts and thanks the investors for showing tremendous faith and trust in our business strategy and also future growth potential.”

Speaking at the same event K. S. Yamoah, Managing Director, Ghana Stock Exchange, said that increased attempts by companies to raise fresh funds through listing of bonds is an attestation that the Ghanaian capital market has picked up. He urged the private sector and the Government of Ghana to take advantage of the current interest from investors to tap the capital markets to finance their projects.

Dr. Adu Anane Antwi, Director General, Securities & Exchange Commission, who also attended the event observed that as more and more professional companies like afb Ghana locally look for capital it augurs well for investors in Ghana.

The Director of the Financial Sector Division, Ministry of Finance, Mr Joseph D. Chognuru in his address said, “The Government is committed to providing a favourable macro-economic environment in Ghana which is conducive for both companies looking for fund and investors whether private or institutional. Such successful listings like that of afb Ghana’s ensures the deepening of our capital markets.”

Arnold further added “afb will predominantly use the first tranche of the bond proceeds to pay off USD debt owed to offshore counterparties. This debt is very expensive, especially given the weakening of the GHS vs the USD over the past two years and the balance will be used to continue expanding the loan portfolio. The successful listing means we can put our exchange risk behind us and confidently continue to grow the business in-to the future.”

afb started its operations in Ghana in 2010 and since then has invested over 20 million USD of capital into the Ghana market. afb Ghana has been growing steadily with over 198 full time staff, over 500 sales agents and has 23 branches catering to over 60,000 customers. The company aims to help drive a better and brighter future for all Ghanaians and has a robust loans product portfolio that covers Payroll loans, afb Direct loans and Smart Cash loans.

afb Ghana sees this as an opportunity to dive into the next phase of advancement which will set the company to enhance service delivery, fund working capital and also expand into new loan products providing wider choices to all Ghanaians to make their lives better.