Arnold Parker, Afb Ghana CEO
AFB Ghana says it has increased its bond issue by two thirds to a total of GH¢300 million.
This is to support its inclusive finance expansion strategy.
Afb’s bonds secured a solid rating last year, thanks to its solid track-record and positive business potential for the medium term.
Global Credit Rating attributes the positive rating track-record to Afb Ghana’s sustainable multi-lending product strategy executed by leveraging on the expertise of its parent Letshego Holdings Limited (Letshego), increased funding diversification, strong capitalisation and enhanced earnings profile.”
Going forward, the rating agency’s interest lies in reviewing Afb Ghana’s recently launched mobile Qwikloan solution, with other new offerings and digital ventures, such as Afb Ghana’s Education Eco-System solution being key considerations for the rating horizon.
Arnold Parker, Afb Ghana’s Chief Executive Officer (CEO) commented, “Our bond programme remains a valuable element of our funding strategy in Ghana. Our increased access to funding not only secures more capital to support expansion strategies, but also achieves cost efficiency in securing local currency funding, as well as extended terms–all elements, which contribute to diversifying our risk.”
Afb Ghana has recently raised an additional GH¢95 million in new bond issues from predominantly local investors.
The issuance of the new 5, 6 and 7-year bonds was again oversubscribed, which was attributable to the strong track-record of Afb and the investment grade rating of the listed bonds.
Mr. Parker added that “our bond credit rating of BBB+ (GH) sits three notches above investment grade, a noteworthy achievement for any expanding business. Letshego and Afb Ghana remain committed to focusing our growth strategy in Ghana to leverage local business potential and secure sustainable growth for the long term.”