Quantum Terminals Group (QTG), a leading energy infrastructure developer in Ghana, has listed a corporate bond on the International Securities Market of the London Stock Exchange (LSE).
The company listed a GH¢45 million (USD 10 million) corporate bond, guaranteed by GuarantCo, to support the operations of its liquid petroleum gas (LPG) storage business.
A release issued in Accra at the weekend said “To celebrate the launch, London’s markets were opened by the Minister of State for Africa, Madam Harriett Baldwin, Ghana’s High Commissioner to the United Kingdom and Ireland, Papa Owusu-Ankomah, and the Executive Director of Quantum Terminals Group, Mr Emmanuel Egyei-Mensah.
“The QTG bond is the first local currency corporate bond from Ghana and West Africa to be listed on London Stock Exchange.
In May 2018, the bond was listed on the Ghana Stock Exchange as the first 10-year tenor bond issued by a non-financial institution on the Ghana Fixed Income Market”.
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The release added that the bond had a 75 per cent partial credit guarantee from GuarantCo, the guarantee arm of the Private Infrastructure Development Group (PIDG), for the benefit of local pension fund investors that have subscribed to the issue adding that “This is the first tranche of a planned GH¢140 million bond programme by QTG.”
It said; “The bond’s innovative nature and ability to strengthen capital markets in Ghana is in line with GuarantCo’s vision to support local currency financing for infrastructure projects in lower income countries to assist with the alleviation of poverty.
This bond issuance is expected to have significant demonstrative effect in Ghana.”
Madam Baldwin, said: “At the Commonwealth Summit in April, the Secretary of State announced the UK’s support to help African countries raise debt in their local currencies. Today, we deliver on this commitment as we celebrate the first ever Ghanaian Cedi bond to be listed on the London Stock Exchange.
“Ghana is one of the world’s fastest growing economies and there are significant opportunities for the UK and Ghana to deepen our economic partnership.
Today’s listing marks an important milestone which will support development in Ghana and provide opportunities for UK-based investors, a win-win.”
Mr Egyei-Mensah on his part also noted that: “The success of the bond is testament of investor interest in building exposure to Ghana which we are now looking to expand through our London listing.
GuarantCo’s guarantee has been critical in facilitating our first local currency corporate bond transaction.
This is a great example of how development finance institutions should be partnering with the private sector.
The London listing of the bond will signal a new beginning for corporates accessing capital markets in Ghana.”
The CEO of GuarantCo, Mr Lasitha Perera, said: “The listing today represents a major milestone for Quantum Terminals Group and GuarantCo.
Supporting the development of local capital markets is a priority for PIDG companies, and Ghana’s capital markets have a crucial role to play in the development of the country’s infrastructure sector that is critical to its economic development and future prosperity.”
The release also quoted the Head of Fixed Income, Funds & Analytics, UK Primary Markets, London Stock Exchange Group, Mr Darko Hajdukovic as saying that: “We are delighted to welcome the first local currency corporate bond from Ghana to our International Securities Market.
London Stock Exchange continues to offer international fixed income issuers access to London’s highly efficient and deep capital markets.
We are committed to building London’s position as the international centre for local currency offshore capital raising and we congratulate Quantum Terminals on their listing.”