Afb Ghana seeks to expand, and list on Ghana stock market
In an attempt to expand its footprint throughout Ghana, financial services company, afb, has received approval to list bonds up to GHS 100 million on the Ghana Stock Exchange. This comes on the heels of afb receiving a BBB credit rating, making it an “investment grade” bond.nb
Managing Director of afb Ghana, Arnold Parker, said on the impending listing, “By doing this, we broaden the universe of investors who can support the growth of afb in Ghana. A listed funding platform allows afb to continue to fund the development of the company from the local stock exchange.”
Chief Financial Officer of the afb Group, Bruce Sneddon, stated that, “afb will predominantly use the first tranche of the bond proceeds to pay off USD debt owed to offshore counterparties. This debt is very expensive, especially given the weakening of the GHS vs the USD over the past two years and the balance will be used to continue expanding the loan portfolio.”
Parker further added, “afb Ghana has been growing steadily in the market and today we have 23 branches catering to over 60,000 customers.” This raising of funds will set the company up for the next phase of advancement. It will help streamline activities to enhance service delivery, fund working capital and also expand into new loan products which will provide wider choices to all Ghanaians to make their lives better.” Commenting on the ‘BBB’ rating accorded by GCR (Global Credit Rating) Company to afb’s GHS 30 million bond issue, Sneddon said, “We are the first company in Ghana to have a rated listing and this also shows confidence in afb’s vision and strategy for the Ghanaian market.”
afb is a financial services company providing innovative consumer and SME credit products in sub-Saharan Africa. Committed to responsible lending, afb is the first to offer mass-market, voluntary repayment products in the markets in which it operates. These products are delivered through technology-based solutions in partnership with mobile network operators, retail stores and other enterprises. afb has over 600,000 customers in Kenya, Ghana, Zambia and Tanzania, and over 450 retail partners.
source: AFB Ghana