Kasapreko PLC’s raises GH¢600m through Ghana Stock Exchange
THE Ghana Stock Exchange (GSE) has formally admitted Kasapreko PLC’s GH¢600 million note programme to the Ghana Fixed Income Market (GFIM).
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Consequently, the local bourse officially declared series one tranche one and two totalling GH¢151 million of the programme officially listed on the market.
It becomes the single largest capital raise on the Ghana Fixed Income Market by a manufacturing company in the country.
Issuance
This issuance is structured as a three-year senior unsecured note with a floating rate coupon and bullet repayment of principle at maturity.
It will be issued in tranches to refinance expensive short-term debt, support working capital, and refinance capital expenditure.
For the company, this is the first step towards diversifying the funding mix and optimising the maturity structure of its debt funding.
Kasapreko PLC which has grown to become one of Ghana’s foremost indigenous companies, has over the past three decades, transcended its humble beginnings to emerge as a leading beverage manufacturer in Ghana.
Kasapreko PLC manufactures over 30 different brands for local consumption and exports to 13 countries in Africa, Europe and Asia. The company’s state-of-the-art factories, strategically located in Accra and Kumasi, produce high-quality alcoholic and non-alcoholic beverages, including spirits, beer, wines, juices, energy drinks and water.
Earlier before tolling the bell to officially announce the listing of the programme, Managing Director of the GSE, Abena Amoah, described the move by Kasapreko PLC as a bold step towards its quest to dominate not only the Ghanaian market but to be a major player on the continent and the world at large.
She said the presence of Kasapreko PLC on the stock market was a testament to the fact that the local bourse was a reliable source for raising patient capital to expand business, adding that “I hope other industry players in the country will take a cue to list their companies on the local bourse.”
Diverse advantages
The Managing Director, Kasapreko PLC, Richard Adjei, said the company’s dedication to excellence has been recognised with numerous awards from esteemed organisations such as the Ghana Beverage Association, the Association of Ghana Industries (AGI), the Chartered Institute of Marketing Ghana, GIPC, and the Ghana Revenue Authority (GRA).
“We believe that investors will recognise and leverage the diverse advantages presented by this note programme, the first of its kind by a manufacturing company in Ghana. Beyond the opportunity to align with Ghana's most diversified beverage producer, this programme also serves as a viable alternative to treasury securities in Ghana, offering essential liquidity through its listing on the GFIM.”
This is essential for investors seeking diversification, even within the fixed-income market.”
Mr Adjei said the cash build-up structure offered by the Note Programme demonstrates the company’s commitment to meeting its financial obligations to investors.
“Importantly, the Note Programme offers investors the opportunity to be part of Ghana’s growth agenda by supporting the manufacturing sector, a major driver in Ghana’s economy, offering opportunities for job creation and other economic benefits.”
Investing in Kasapreko transcends mere financial gain; it signifies a commitment to supporting a company dedicated to the progress of Ghana,” Mr Adjei said.
He appreciated investors who were instrumental in the Series One, saying: “Our Series 1 note of GH¢150million was 100 per cent subscribed and serves as the single largest capital raise on the Ghana Fixed Income Market. To the investors who were instrumental in the success of Series 1 - Axis Pensions, United Pensions Trustees, Petra Trust, Bora Capital, Databank Asset Management, First Atlantic Asset Management, Glico Capital, Sentinel Asset Management and Stanbic Investment Management”.
Transaction
The Managing Director of Consolidated Bank Ghana (CBG), Wilson Addo, outlined a number of reasons why the transactions were important, saying: “It is the first time an indigenous Ghanaian bank has worked with an indigenous manufacturing company to raise funding from local pension funds in the public market.”
“CBG worked with key stakeholders in the financial industry such as managers, pension fund trustees and other transaction advisers to raise medium-term funding at a cost significantly lower than the Ghana Reference Rate for borrowing. This transaction is another addition to the issuance on corporate bond market and I am supremely confident that it will ignite growth in this market segment.”
