Letshego Ghana raises GHc100 million to finance operations
Letshego Ghana Savings and Loans Plc has initiated a five-year programme to raise GHC500 million to finance the operations of the company.
The move is to enable the company double the number of customers it serves, which currently stands at more than 100,000.
For a start, the company has successfully raised GHc100 million to diversify its funding sources and promote innovative and inclusive finance in the country, which was arranged by Stanbic Bank.
Letshego Ghana a leading savings and loans company in the country provides financial services such as digital and payroll loans to individuals who need capital to finance their needs.
Speaking at a ceremony for the admission of Letshego Ghana’s GHc500 million Medium-Term Note Programme and the listing of the initial bond totaling GHC100 million on the Ghana Stock Exchange (GSE), the Managing Director of GSE, Abena Amoah said the timing of the listing was crucial as it came when the financial market was showing signs of recovery and renewed investor confidence.
She said the Ghana Fixed Income Market is on post the Domestic Exchange Programme recovery trajectory, saying year-to-March 2024 had seen a substantial uptick with a trading volume of 40.69 billion, compared to 24.76 billion in the same period last year.
“The resurgence not only reflects renewed investor confidence but also underscores the market’s ability to navigate challenges and seize opportunities Leshego’s listing adds depth and diversity to the market, attracting new investors, and enhancing liquidity,” Ms Abena stated.
The GSE Managing Director lauded Letshego for the using the GSE’s Fixed Income Market to raise capital and entreated other corporate bodies especially those in the real estate and manufacturing to use the Accra bourse to raise long-term capital to finance their operations.
The Country Chief Executive Officer of Letshego Ghana Savings and Loans PLC, Nii Amankra Tetteh said the successful funding round was a testament to the confidence and trust placed in the Letshego Ghana brand by investors.
“With this funding injection, we can provide increased access to inclusive finance solutions for more Ghanaians and demonstrate economic and social impact in communities across Ghana, through productive lending. We appreciate the ongoing support for our investors, who remain valuable partners as we fulfill our brand purpose to improve more lives in Ghana,” he stated.
Mr Tetteh said Letshego Ghana started the Notes programme in 2015 and successfully raised GHc100 million and further expanded programme to GHc300 million in 2018.
He said following the success of the programme, Letshego Ghana decided to expand the programme to GHc500 million to raise capital to serve customers of the company.
The Chief Finance Officer of Letshego Ghana, Poelo Mkpayah said “The success of this bond issuance evidences the company’s strong financial and business fundamentals.”
The Head, Investment Banking of Stanbic Bank, Kobby Bentsi-Enchill said his outfit was proud to be associated with the programme.
He said debt programme allowed Letshego Ghana to raise funds from insurance companies, pension funds to finance the operations of the company.
Mr Bentsi-Enchill said the funds would help the company to promote financial inclusion and served the underserved in the country.
BY KINGSLEY ASARE
