Chief Executive Officer of Letshego, Arnold Parker, who disclosed this during the company’s turn of Facts behind the Figures series at the Ghana Stock Exchange (GSE) in Accra on Tuesday, said the company had received the approval of the board to raise additional funds through the bonds market under the GSE.
The amount would bring to GH¢500 million, funds the company had raised through the Ghana Fixed Income Market of the GSE to finance the operations of the company.
Letshego Ghana in in 2015 through the Ghana Fixed Income Market to raise GH¢300 million from the bonds market to shore up the finance the company.
Mr Parker said so far the company under the bonds programme had raised about GH¢298 million.
“Without the bonds programme, Letshego would not have been in business by now,” he said.
He said the company would raise the money at the appropriate time, saying at the time of high inflation it would not be appropriate to do so.
In addition, to the bonds, programme, he said outfit would soon raise GH¢50 million through equity from the GSE.
Touching on the 2021 results of the company, Mr Parker said Letshego Ghana performed well despite the challenges posed by the COVID-19 pandemic.
He said total Assets grew by 93 per cent propelling the company to cross GH¢1 billion.
Mr Parker said the Net Loans and Advances to customers grew by 58 per cent as a result of increased disbursements of its loan products, driven by focused initiatives and strategic campaigns to drive volumes.
“Deposits also increased by a staggering 191 per cent, triggered by strengthened partnerships as institutional and individual customers increased their uptake of the company’s LetsGo Accounts that offer highly competitive yields and convenient transaction capabilities. Deposit mobilisation remains a priority for the company, evidenced by the increased deposit customer numbers,” Mr Parker said.
He said the company’s operating expenses decreased by 23 per cent year-on-year due to robust cost management measures to deliver operational efficiencies and a tight budget focus, stressing the continuous investments in technology over the years seemed to be paying off for the company now.
“One of the metrics that investors have paid attention to is Letshego’s Bond Covenant Ratio. Being the only listed bond on the GSE with a rating, the company has taken pains to ensure that it consistently outperforms the benchmark rate of 150 per cent. The ratio measures how much funds the company has raised vis-à-vis how much it has disbursed into earning assets. The ratio stood at 317 per cent as at 2021.Arnold Parker, Letshego Ghana’s Chief Executive Officer said.
The Board Chairman of Letshego Ghana, Mr Blaise O. Mankwa, said despite the global economic headwind, his outfit performed well.
He said the bank grew in all the key metrics and the board was positive and optimistic of the strategy of the bank which was focused on its customers.
Deputy Managing Director of GSE, MsAbenaAmoah, commended the company for its sterling performance in 2021.
She also lauded the company for use the GSE to raise money to finance its operations.