Bayport raises GH¢89m on fixed income market
The Bayport Savings and Loans Plc. has successfully raised a total of GH¢89 million from the fixed income market of the Ghana Stock Exchange.
This was raised after the company closed a dual offer issuance to raise GH¢40 million through a two-year senior unsecured fixed rate note and another GH¢49 million through a three-year senior unsecured floating rate note.
The dual notes issuance, which were listed on the Fixed Income Market of the Ghana Stock Exchange, constitute the second and third series of notes under its GH¢500 million medium-term note bond programme.
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 GH¢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 two-year note was priced at a fixed rate of 21 per cent, while the 3-year was priced at a spread of 100 basis points above the 182-day Treasury bill benchmark rate with a cap of 30.39 per cent and a floor of 17 per cent.
A release issued by the company noted that these pricing levels underscore its ability to consistently execute competitive issuances throughout its eight-year history of accessing the domestic capital markets in Ghana.
It said a significant portion of the bond proceeds would 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,” the release noted.
Commenting on the feat, the Managing Director of Bayport Ghana, Akwasi Aboagye, said "our successful bond issuance reflects Bayport's unwavering commitment to empowering Ghana's underserved communities through accessible finance.
The Chief Finance Officer of Bayport Ghana, Dzifa Cofie, also added that this transaction highlighted its financial resilience and ability to navigate complex market conditions.