Afb Ghana, a Letshego Holdings Limited subsidiary, has increased its bond issue by two-thirds – an approximated P648 million – according to a report from the company’s headquarters in Gaborone.
Afb Ghana, which was acquired last January, continues to show growth with bonds that have managed to secure a solid rating for the last year.
This is largely due to the company’s impressive track record and positive medium-term business potential.
The report, dated 9 July, states that Global Credit Rating attributes Afb Ghana’s solid track record to its “sustainable multi-lending product strategy executed by leveraging on the expertise of its parent Letshego Holdings Limited, increased funding diversification, strong capitalization, and enhanced earnings profile.”
The report goes on to mention Afb Ghana’s recently launched mobile Qwikloan solution, as well as similar new offerings and digital ventures, as reasons for its positive prospects.
Speaking of the results, Afb Ghana’s delighted CEO, Arnold Parker said the company’s bond programme remains a valuable element of its funding strategy.
“Our increased access to funding not only secures more capital to support expansion strategies but also achieves cost efficiencies in securing local currency funding as well as extended terms. These are all elements which contribute to diversifying our risk,” he highlighted proudly.
Parker further noted that Afb Ghana has recently raised an additional GHS95million (P203, 280, 175) in new bond issues from predominantly local investors.
He added that the issue of the new 5, 6 and 7-year bonds was again oversubscribed and attributable to Afb’s strong record as well as the investment grade rating of the listed bonds.
“Our bond credit rating of BBB+ (GH) sits three notches above investment grade, a noteworthy achievement for any expanding business,” he said, adding Letshego and Afb Ghana remain committed to focusing their growth strategy in Ghana to leverage local business potential and secure sustainable growth for the long term.