Letshego Savings and Loans secures GH¢100m via debt capital market

• Issue of GH¢100 million in aggregate, via a dual offer
• 3-year fixed rate notes due 2027
• 5-year floating rate notes due 2029

Letshego Ghana Savings and Loans Plc has successfully listed its GH¢100million Senior Unsecured Dual Bond Offer on the Ghana Fixed Income Market, marking its second issuance this year under its expanded GH¢500 million Medium-Term Note Programme.

This demonstrates the company’s commitment to diversifying its funding base and providing alternative investment opportunities to the local debt capital market. With this latest issuance, Letshego has raised a total of GH¢200 million in 2024, having earlier secured GH¢100 million in March.

The issuance saw significant interest, with total bids peaking at GH¢131 million reflecting an oversubscription rate of 1.31 times. The transaction was priced at 22.50percent for the three-year fixed rate note, while the five-year floating rate note was priced at 182-day T-bill rate plus a margin of 100 basis points. Overall, the success of this issuance reaffirms Letshego Ghana’s standing as a trusted corporate bond issuer in Ghana’s active capital market.

Commenting on the bond issuance, Country Chief Executive Officer of Letshego, Nii Amankra Tetteh, noted, “We would like to express our gratitude to our investors for the continuous confidence and trust posed in the Letshego team.

With this fund injection, we can continue to work on our strategy of providing increased access to inclusive financial solutions across the country. We appreciate the ongoing support of our investors, who remain valuable partners as we fulfill our brand purpose to improve more lives in Ghana.”

Stanbic Bank Ghana LTD and Black Star Brokerage Limited were joint lead arrangers and co-sponsoring brokers to the issue.

Letshego Ghana Savings and Loans PLC (Letshego Ghana) is a leading savings and loans company in Ghana’s Non-Bank Financial Institutions sector licensed by the Bank of Ghana to provide financial services.

Letshego Ghana was established in 2010 under the name African Financial Services (GH) Limited, a subsidiary of the AFB Group, and later rebranded as African Finance Business Ghana Limited (AFB Ghana) in 2013.

The Company has since grown steadily to a staff complement of over 120 employees, spread across 16 outlets and serving over five million customers through strategic partnerships, innovative technology, and digital delivery channels.

In 2016, AFB Ghana was wholly acquired by Letshego Africa Holdings Limited, Africa’s largest payroll lender, headquartered in Botswana. Letshego Africa Holdings Limited is an African multinational, first opening its doors in Botswana more than 21 years ago by offering loans to government employees.

The Group supports public and private sector individual customers as well as micro and small entrepreneurs. Letshego Africa Holdings Limited has operations in eleven (11) Sub-Saharan African markets including Eswatini, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda, Tanzania, Botswana, Uganda, and Ghana. In August 2024, Letshego Ghana secured a BBB – (GH) rating with a negative outlook, from GCR Ratings (an affiliate of Moody’s Investors Service).

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