Ghana: Bayport secures GH¢89 million on fixed income market

Bayport Savings and Loans Plc. has effectively secured GH¢89 million from the fixed income market on the Ghana Stock Exchange.

The company accomplished this by concluding a dual offering, gathering GH¢40 million through a two-year senior unsecured fixed rate note and an additional GH¢49 million through a three-year senior unsecured floating rate note.

These dual notes, which were listed on the Fixed Income Market of the Ghana Stock Exchange, represent the second and third series of notes within the GH¢500 million medium-term note bond program.

The issuance was the result of a successful series of interactions with investors in which Bayport shared detailed updates on its trading performance and business strategy. This approach enabled the company to excel in a market characterized by high interest rates and prolonged uncertainty.

The order book peaked at GH¢127 million, representing an aggregate subscription of 1.27x of the offering.  

It’s worth highlighting that a wide range of fund managers participated in the order book, leading to a well-priced bond issuance, even in the face of challenging market conditions.

The two-year note was set at a fixed rate of 21 percent, while the three-year note was established with a spread of 100 basis points above the 182-day Treasury bill benchmark rate, ranging from a minimum of 17 percent to a maximum of 30.39 percent.

A release issued by the company noted that these pricing levels underscore its ability to consistently execute competitive issuances throughout its eight-year history of accessing the domestic capital markets in Ghana.

A substantial portion of the bond proceeds will be directed toward payroll lending programs designed to benefit public sector employees.

“This transaction is a testament to investors’ unwavering confidence in Bayport Ghana’s creditworthiness built over two decades of operations in Ghana. It also reflects Bayport Ghana’s robust credit profile and resilience in delivering high-quality financial services to the Ghanaian market.

“This achievement is particularly significant in Ghana’s capital market, which has recently experienced subdued activity, diminished investor confidence and concerns surrounding sovereign debt restructuring and financial sector stability,” the release noted.

Commenting on the feat, the Managing Director of Bayport Ghana, Akwasi Aboagye, said “our successful bond issuance reflects Bayport’s unwavering commitment to empowering Ghana’s underserved communities through accessible finance.  

The Chief Finance Officer of Bayport Ghana, Dzifa Cofie emphasized that this transaction underscores the company’s financial strength and its capability to successfully navigate challenging market conditions.