The First Corporate Bond to be Issued by a Non-Financial Institution in Ghana
Ghana – May 10, 2018 – PIDG company GuarantCo has signed a deal with Quantum Terminals to support the operations of Quantum’s LPG storage business in Ghana.
Quantum Terminals is issuing a GHS 45 million (USD 10 million), 10-year corporate bond on the Ghanaian Stock Exchange. The bond has a 75% partial credit guarantee from GuarantCo, for the benefit of pension fund investors that have subscribed to the issue. This is the first tranche of a GHS 140 million bond programme by the company.
Quantum Terminals is the first non-financial institution to issue a corporate bond on the Ghana Fixed Income Market. The long tenor of 10 years is also a first in the Ghanaian corporate bond market. The local currency nature of the bond will allow Quantum Terminals to manage future exchange rate volatility.
The bond’s innovative nature and ability to strengthen capital markets in Ghana is inextricably connected to GuarantCo’s mission, which is to support the development of capital markets and infrastructure in emerging and frontier markets, to assist with the alleviation of poverty. This bond issuance is expected to have significant demonstration effect in Ghana.
GuarantCo CEO, Lasitha Perera said: “GuarantCo is delighted to have partnered with Quantum Terminals Limited on this landmark corporate bond issue, which will support the construction of essential energy infrastructure. Ghana’s capital markets have a crucial role to play in the development of the country’s infrastructure sector, which is critical to its economic development and future prosperity. It is our hope that through the precedents and framework that this transaction establishes other corporates, and investors can benefit and stimulate the growth of the local capital markets.”
