Bayport Financial Services lists GH¢78.5m debt instrument on Ghana Alternative Market

Bayport Financial Services has listed its GH¢78.5million Medium-Term Note on the Ghana Alternative Market (GAX) of the Ghana Stock Exchange (GSE).

The listing of the debt instrument is the first tranche of the company’s intention to raise GH¢200 million from the GAX in the medium term.

The GH¢200 million medium-term note programme is expected to enable the company to raise capital to reduce its debt and increase its working capital.

Speaking at a ceremony to mark the listing of the bond in Accra, the Managing Director of Bayport Ghana Limited, Mr Kofi Adu-Mensah, said the company’s funding in the past had been geared towards foreign-exchange denominated funds which came with its own risks.

“Delivering on our promise to customers and business growth requires funding; Bayport’s finance funding mix had been skewed towards foreign-exchange denominated funds. This has come with its own inherent risks and losses,” he said. 

The listing, he therefore explained, would help the company generate funds locally to support its growth, which would enable it deliver on its promise to customers.

“As we list the successful GH¢78.5million note issuance, which is part of Bayport’s GH¢200 medium-term programme on the GAX, we are confidently saying that our promise to our customers and shareholders would be fulfilled,” he added.

Use funds for right purpose
The Managing Director of the GSE, Mr Kofi Yamoah, said the listing by Bayport is the highest since the inception of the GAX. He therefore urged the company to use the funds generated for the right purpose in order to build investor confidence in the capital market.

“In your prospectus you indicated the purpose of the issue. We see that you want to use it to reduce debt and increase your working capital. Let it go that way, so that we can build investor confidence in this market,” he said.

He added, “you need to keep your note holders and the market as a whole informed of all information, whether good or bad. That way, we can create confidence in this market.”

SMEs and finance
A Deputy Minister of Finance, Mrs Mona Quartey, said a major challenge of small and medium enterprises (SMEs) in the country was access to finance. The government therefore introduced the GAX to enable them increase their access to funding.

Mrs Quartey therefore urged SMEs to use the market to raise capital from the capital markets, adding, “I therefore urge all other potential SMEs to follow the steps of Bayport

Financial Services to raise capital from this market as a preferred source of financing which will make our market more vibrant, attractive and competitive in the sub-region.”