Federated Commodities PLC (FEDCo), a licensed buying company, has raised GH¢72.5 million on the Ghana Stock Exchange (GSE) to enhance the liquidity and growth of the company.
The amount raised through the Commercial Paper Market on the Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange (GSE), will help to improve the liquidity of FEDCo and enhance its financial capacity to buy cocoa this light crop season.
The Commercial Paper was launched by the GSE last year to assist corporate bodies to raise short term loans to finance their operations.
Speaking at the admission of FEDCo on the Ghana Fixed Income Market on Friday, the Managing Director of the GSE, Abena Amoah, said FEDCo was the first company to be admitted onto the GFIM market.
“This landmark issuance underscores the effectiveness of the Commercial Paper Market in providing businesses with alternative short-term financing opportunities,” she stated.
The GSE MD said the admission of FEDCo on the Commercial Paper Market marked a significant milestone for Ghana’s capital market since the Commercial Paper Market was launched in 2024.
She lauded FEDCo a leading cocoa buying company for using Commercial Paper Market to raise funds to finance its operations.
“The GSE remained committed to providing efficient, transparent and robust platforms for corporate organisations to raise capital,” Ms Amoah stated.
The Managing Director of Federated Commodities PLC, Maria Adamu-Zibo, said FEDCo, was a leading player in Ghana’s agriculture sector, was pioneering the short-term financing instrument to enhance liquidity and business growth.
She said her outfit wanted to raise GH¢200 million but was able to raise more GH¢72.5 million.
Mrs Adamu-Zibo said the funding would help the company to purchase cocoa in this crop season.
“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.’’
The Managing Director of FEDCo said her outfit had up to August to retire the loan and said FEDCo would come to the market again to raise more funding for cocoa purchases in the main crop season in September this year.
The Chief Executive Officer of the Ghana Association of Banks, John Awuah, who was the special guest of honour, in his address said, ‘‘This inaugural issuance serves as a critical test case, and honoring payment obligations will be essential in building and sustaining investor trust and confidence in similar instruments going forward.’’
He said FEDCo’s move would open the flood gate and encourage other corporate organisations to use the Commercial Paper Market to raise capital.
In his remarks, the Director-General of the Securities and Exchange Commission (SEC), Dr James Klutse Avedzi, reaffirmed the regulator’s commitment to fostering market confidence, enforcing compliance, and strengthening collaborations with the Central Securities Depository (CSD), and market intermediaries.
He said the successful issuance demonstrated the increasing confidence of corporate entities in Ghana’s capital markets and reinforced the GSE’s commitment to providing diversified financing solutions for businesses while offering investors good returns.
STORIES: KINGSLEY ASARE
