The Commercial Paper (CP), a product of the Ghana Stock Exchange (GSE) under the Ghana Fixed Income Market, is to support private sector businesses to raise short-term capital from the GSE to meet their finance needs.

As part of the product, eligible companies who needed short-term capital within six, can raise a minimum of GHc1 million to fund their business activities.

Speaking at the launch in Accra on Friday, the Managing Director of the GSE, Ms Abena Amoah said the commercial paper product was to diversify the products on the GSE and boost the capital market in the country.

She said it was also to assist companies who needed short term capital to raise same at lower interest rate to fund their business operations and also to help investors to diversify their investment portfolios.

Ms Amoah explained that as part of the criteria for the CP product,  a company which came to the Commercial Paper Market must worth not less than GHC5 million, should be credit worthy with no history of debt default and should also be a rated company.

The Managing Director of the GSE the launch of the CP Market product marked a significant milestone for the country’s capital market as it was the first regulated public market for short-term corporate debt securities in Ghana.

The Governor of the Bank of Ghana, Dr Ernest Addison in   a speech read on his behalf by the First Deputy Governor, Dr Maxwell Opoku-Afari, said the unique role played by the financial sector in the capital market in developing the country’s economy could not be overemphasised.

Dr Addison said with the launch of the CP market, pillar one of the ten-year strategic Capital Market Master Plan which is to improve the diversity of the investment products and liquidity of the securities market had been achieved.

Dr Addison said the launch the CP Market product had come at an opportune time to create new investment opportunities for institutional investors, such as pension funds, insurance companies, and asset management firms, saying that would instill market confidence in the product and give protection to investors.

The Director-General of the Securities and Exchange Commission (SEC), Reverend Daniel Ogbarmey Tetteh, in remarks made on his behalf by his Deputy in charge of Legal, Mrs Mawusi Agyemfrah, and said SEC was proud to be associated.

He promised that application for companies to enter the CP Market would be processed within seven days.