Bayport Savings and Loans Plc. (BSL) has recorded another impressive feat in the capital market after successfully closing a dual offer issuance raising GH¢40 million through a two-year senior unsecured fixed rate note and GH¢49 million through a three-year senior unsecured floating rate note.
The dual notes Issuance, which were listed on the Fixed Income Market of the Ghana Stock Exchange, constitute the second and third series of notes under its GH¢500 million medium term note bond programme.
The Issuance follows a series of positive investor engagements during which Bayport provided comprehensive updates to investors on its trading performance and business strategy, which enabled it to thrive yet again in a market marked by elevated interest rate levels and protracted uncertainty.
The order book peaked at GH¢127 million, representing an aggregate subscription of 1.27x of the offering. Notably, this diverse order book garnered participation from various fund managers and resulted in a competitively priced bond issuance, even under challenging market conditions.
The two-year note was priced at a fixed rate of 21percent, while the 3-year was priced at a spread of 100bps above the 182-day Treasury bill benchmark rate with a cap of 30.39percent and a floor of 17percent.
These pricing levels underscore Bayport Ghana’s ability to consistently execute competitive issuances throughout its eight-year history of accessing the domestic capital markets in Ghana.
A significant portion of the bond proceeds will be allocated to payroll lending initiatives to serve public sector workers.
Testament to Investors’ Unwavering Confidence in Bayport’s Creditworthiness
This transaction is a testament to investors’ unwavering confidence in Bayport Ghana’s creditworthiness built over two decades of operations in Ghana. It also reflects Bayport Ghana’s robust credit profile and resilience in delivering high-quality financial services to the Ghanaian market.
This achievement is particularly significant in Ghana’s capital market, which has recently experienced subdued activity, diminished investor confidence, and concerns surrounding sovereign debt restructuring and financial sector stability.
Akwasi Aboagye, the Managing Director of Bayport Ghana, commenting on the significant milestone, said “Our successful bond issuance reflects Bayport’s unwavering commitment to empowering Ghana’s underserved communities through accessible finance”.
“We are grateful for the trust our investors have placed in us, and we remain dedicated to our mission of financial inclusion. We would also like to thank our arrangers for another successful issuance.”Akwasi Aboagye
Dzifa Cofie, Chief Finance Officer of Bayport Ghana also shared her views on the successful issuance saying “this milestone transaction highlights our financial resilience and ability to navigate complex market conditions”.
“The funds raised will enable us to provide crucial financial support to those who need it most, especially during these challenging times. We remain thankful to our stakeholders and investor community for all their support on this journey”.Dzifa Cofie
Stanbic Bank Ghana PLC acted as the lead arranger for the transaction, with Databank Brokerage Ltd. acting as the sponsoring broker and as joint co-arrangers with Absa Bank Ghana Ltd.