ISSUE OF DUAL OFFER – SERIES 002 & SERIES 003 UNDER GHS 500 MILLION
DEBT ISSUANCE PROGRAMME
Accra, October 3, 2023. On September 20, 2023, Bayport Savings and Loans (Ghana) PLC (“Bayport Ghana” or the “Issuer”) achieved yet another significant milestone. It successfully closed its Dual Offer Issuance in Accra, Ghana, raising GHS 40 million through a 2-year Senior Unsecured Fixed Rate Note and GHS 49 million through a 3-year Senior Unsecured Floating Rate Note (the “Notes”).
These notes constitute the second and third series of Notes under its GHS 500 million Medium Term Note Bond Programme (the “Note Programme”). The Notes were subsequently listed on the Ghana Fixed Income Market segment of the Ghana Stock Exchange, effective September 28, 2023.
The issuance follows a series of positive investor engagements during which Bayport provided comprehensive updates to investors on its trading performance and business strategy, which enabled it to thrive yet again in a market marked by elevated interest rate levels and protracted uncertainty.
The order book peaked at ~GHS 127 million, representing an aggregate subscription of 1.27x of the offering. Notably, this diverse order book garnered participation from various fund managers and resulted in a competitively priced bond issuance, even under challenging market conditions.
The 2-year note was priced at a fixed rate of 21%, while the 3-year was priced at a spread of 100bps above the 182-day Treasury bill benchmark rate with a cap of 30.39% and a floor of 17%. These pricing levels underscore Bayport Ghana’s ability to consistently execute competitive issuances throughout its eight-year history of accessing the domestic capital markets in Ghana. A significant portion of the bond proceeds will be allocated to payroll lending initiatives to serve public sector workers.
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.
Akwasi Aboagye, the Managing Director of Bayport Ghana, had this to say about this milestone:
“Our successful bond issuance reflects Bayport’s unwavering commitment to empowering Ghana’s underserved communities through accessible finance. We are grateful for the trust our investors have placed in us, and we remain dedicated to our mission of financial inclusion. We would also like to thank our Arrangers for another successful issuance.”
Dzifa Cofie, the Chief Finance Officer of Bayport Ghana also shared her views on the successful issuance:
“This milestone transaction highlights our financial resilience and ability to navigate complex market conditions. The funds raised will enable us to provide crucial financial support to those who need it most, especially during these challenging times. We remain thankful to our stakeholders and investor community for all their support on this journey.”
Stanbic Bank Ghana LTD acted as the Lead Arranger for the transaction, with Databank Brokerage LTD acting as the Sponsoring Broker and as Joint Co-Arrangers with Absa Bank Ghana LTD.
For further information on the issued Notes and the Note Programme, contact:
- Dzifa Cofie (Bayport Savings and Loans Ghana PLC):
024 331 0180
- Baffour Agyarko Kwakye (Stanbic Bank Ghana LTD):
059 395 9122
- Armah Akotey (Databank Brokerage LTD):
024 454 1626
- Kizito Seddoh (Absa Bank Ghana LTD):
050 129 8468