Accra, Ghana – The Ghana Stock Exchange (GSE) today announced the first-ever issuance of a Commercial Paper on its Ghana Fixed Income Market (GFIM).
The issuer is Federated Commodities PLC, the third largest licensed buying company in Ghana raised GHS 72.5 million in the first tranche of its GHS 200 million Commercial Paper programme.
This milestone marks a significant step forward for Ghana’s capital markets since the Commercial Paper Market was launched in 2024.
Federated Commodities PLC (FEDCO), a leading player in Ghana’s agriculture sector, is pioneering this short-term financing instrument to enhance liquidity and business growth.
Commenting on the development, the Managing Director of the Ghana Stock Exchange, Madam Abena Amoah, stated, “This landmark issuance underscores the effectiveness of the Commercial Paper Market in providing businesses with alternative short-term financing opportunities.
We are excited to see the first corporate entity leverage this platform for their short-term capital needs and look forward to more corporate issuances in the coming months.”
Speaking at the launch, the Managing Director of Federated Commodities PLC, Maria Adamu-Zibo, said, ‘’Issuing the first-ever Commercial Paper on the Ghana Fixed Income Market is more than a financial milestone — it’s a statement of faith in Ghana’s capital markets and a reaffirmation of our commitment to the people and communities we serve.’’
She described the capital raise as a “strategic leap” aimed at capitalising on rising food prices, expanding FEDCO’s impact, and delivering more value to farmers and stakeholders.
Speaking about the impressive performance of her company, Madam Adamu-Zibo said: “From a 5.7% market share in 2017/2018, we now command a 10.5% share. International partner resource support has grown from 2.3% to 12% over the same period”.
Over 41,000 of the 70,000 farmers under its network now benefit from Fedco’s sustainability initiatives, with the company’s initiatives further positively affecting over 400,000 lives nationwide, according to her.
“Our joint investments with partners amount to $20 million—over GHS 300 million—in cash and in-kind support for our sourcing communities,” Madam Adamu-Yibo said.
She was quick to add that the company which rose to become the third-largest Licensed Buying Company (LBC) in Ghana by the end of the 2021/2022 cocoa season, is now expanding beyond cocoa into logistics, commodity trading, and food processing, with an 18,000-metric tonnes rice mill in Kampung Dari and a food processing facility underway.
The Chief Executive Officer of Ghana Association of Banks (GAB), John Awuah who was also the special guest of nonour at the event, said: “This inaugural issuance serves as a critical test case, and honouring payment obligations will be essential in building and sustaining investor trust and confidence in similar instruments going forward.’’
In his remarks, the Director-General of the Securities and Exchange Commission, Ghana, Dr. James Klutse Avedzi, reaffirmed the regulator’s commitment to fostering Document Classification: Public market confidence, enforcing compliance, and strengthening collaborations with the GSE, Central Securities Depository (CSD), and market intermediaries.’’
This successful issuance demonstrates the increasing confidence of corporate entities in Ghana’s capital markets and reinforces the GSE’s commitment to providing diversified financing solutions for businesses while offering investors good returns.
SOURCE : https://africaneyereport.com/historic-federated-commodities-plc-issues-the-first-commercial-paper-on-the-ghana-fixed-income-market/