After 6 years of being in the market, Consolidated Bank Ghana Ltd. (CBG) has proven to be the SME bank of choice, exemplified by its landmark GHS 350 million capital raise for Kasapreko Company PLC. This achievement underscores the bank's mission to empower local enterprises and drive economic resilience in Ghana.
Indeed, since its inception, CBG has disbursed over GHS 1.6 billion in loans to more than 5,600 businesses across sectors such as energy, tourism, and agriculture, reflecting its dedication to providing meaningful financial solutions to Ghanaian enterprises.
CBG's Corporate and Institutional Banking (CIB) division plays a central role in supporting local businesses, offering customized financial solutions through its specialized Syndications and Capital Markets (SCM) department. The SCM department has spearheaded substantial transactions, including a GHS 1 billion syndication for the power sector, a USD 29.6 million financing for Ghanaian-owned hotels, and the GHS 7.93 billion Cocobod exchange program, solidifying CBG's role as a key financial partner.
The success of the Kasapreko capital raise can be traced back to the strategic vision and dedicated efforts of CBG's CIB division, particularly its SCM department. Established as a specialized unit within CIB, the SCM team conducted a thorough analysis that identified the benefits of capital market financing for the leading indigenous beverage manufacturer, Kasapreko. After conducting a detailed financial assessment, the SCM team proposed this alternative to traditional funding methods, recognizing the potential to secure more affordable and patient capital for Kasapreko's operations.
Kasapreko, a longtime client of CBG, responded positively to the SCM team's proposal. As a Co-Lead Arranger for the transactions, CBG's SCM department played a pivotal role in the successful execution of the deal. The financing programme, which commenced in February 2024, was structured as a GHS 600 million Note Programme, with the first series raising GHS 150 million. The second series, completed in September 2024, secured an additional GHS 200 million, also oversubscribed.
This landmark transaction not only set a new benchmark for capital raising in Ghana but also demonstrated the growing sophistication of the country's capital market in supporting indigenous businesses. The total program size provides Kasapreko with substantial financial flexibility for its operations and expansion plans, particularly within the African Continental Free Trade Area (AfCFTA).
CBG's achievement in raising GHS 350 million for Kasapreko reinforces its leadership in structuring innovative financial solutions for local companies. This success story is a testament to the Bank's unwavering commitment to empowering Ghanaian enterprises and driving economic development across the country.
Looking ahead, CBG's CIB division remains focused on exemplifying the Bank as a financially resilient Ghanaian institution driven by a vision to support the growth and resilience of local businesses. This accomplishment solidifies CBG's position as a trusted partner for Ghanaian enterprises seeking transformative financial solutions.