Letshego Ghana Savings and Loans secures GH₵100m via debt capital market

Financial Service provider, Letshego Ghana Savings and Loans Plc, says it has successfully listed its GH₵100m senior unsecured dual bond offer on the Ghana Fixed Income Market.

The listing marks the second issuance for the company this year under its expanded GHS500 million medium-term note programme.

According to a release issued by the company, the feat chalked up demonstrated the company’s commitment to diversifying its funding base and providing alternative investment opportunities to the local debt market.

“With this latest issuance, Letshego has raised a total of GH₵200 million in 2024, having earlier secured GHS100million in March,” the release noted.

Significance

The issuance saw significant interest with total bids peaking at GH₵131 million reflecting an oversubscription rate of 1.31 times. The transaction was priced at 22.50% for the 3-year fixed rate note, while the 4-year floating rate note was priced at 182-day T-bill rate plus a margin of 100 basis points. 

Overall, the success of this issuance reaffirms Letshego Ghana’s standing as a trusted corporate bond issuer in Ghana’s active capital market.

Commenting on the bond issuance, Country Chief Executive Officer of Letshego, Nii Amankra Tetteh, expressed readiness to accept its new reality.

“We would like to express our gratitude to our investors for the continuous confidence and trust posed in the Letshego team. With this funds injection, we can continue to work on our strategy of providing increased access to inclusive financial solutions across the country. 

We appreciate the ongoing support of our investors, who remain valuable partners as we fulfil our brand purpose to improve more lives in Ghana,” he stated.

Stanbic Bank Ghana LTD and Black Star Brokerage Limited were joint lead arrangers and co-sponsoring brokers to the issue.

Letshego

Letshego Ghana Savings and Loans PLC (“Letshego Ghana”) is a leading savings and loans company in Ghana’s Non-Bank Financial Institutions sector licensed by the Bank of Ghana to provide financial services. 

Letshego Ghana was established in 2010 under the name African Financial Services (GH) Limited, a subsidiary of the AFB Group, and later rebranded as African Finance Business Ghana Limited (“AFB Ghana”) in 2013. 

The Company has since grown steadily to a staff complement of over 120 employees, spread across 16 outlets and serving over five (5) million customers through strategic partnerships, innovative technology, and digital delivery channels.

In 2016, AFB Ghana was wholly acquired by Letshego Africa Holdings Limited, Africa’s largest payroll lender, headquartered in Botswana. 

Letshego Africa Holdings Limited is an African multinational, first opening its doors in Botswana more than 21 years ago by offering loans to government employees.