Managing Director of the Ghana Stock Exchange (GSE), Ms. Abena Amoah, has extended a compelling invitation to well-run Ghanaian businesses to leverage the Exchange’s growing suite of innovative capital-raising instruments, following the successful issuance of the first-ever Commercial Paper (CP) by Federated Commodities (FEDCO).
Speaking in an interview on the sidelines of the issuance, Ms. Amoah said the landmark transaction underlines the GSE’s commitment to building a diversified and responsive marketplace that not only offers investors quality assets but also helps businesses unlock growth capital at competitive rates.
“At the Ghana Stock Exchange, we remain committed to providing efficient, transparent, and robust platforms for raising capital. The Commercial Paper Market is one of the latest additions in our innovation and diversification agenda,” she stated.
A Cheaper, Faster Route to Capital
FEDCO, an agribusiness firm operating in the cocoa sector, raised short-term funds through the CP issuance to support cocoa purchases during the ongoing season. The 150-day instrument—roughly five months—was specifically tailored to match FEDCO’s operational cycle.
READ ALSO
“They came to the market, met investors, especially our pension funds, and raised this money much cheaper than they would have through traditional short-term funding methods,” Ms. Amoah explained.
According to her, beyond providing funding, the CP issuance process required FEDCO to enhance its corporate governance, open its books to scrutiny, and obtain a rating from a recognized agency—steps that significantly improve investor confidence and institutional resilience.
Raising the Bar on Corporate Governance
Ms. Amoah emphasized that participation in the CP market helps businesses strengthen internal structures. “A company that seeks to issue commercial paper must subject itself to better corporate governance requirements and sustainability standards,” she said.
She noted that if FEDCO performs well under this first issuance, it opens the door for repeat transactions during subsequent cocoa seasons, thereby building a credible track record with both existing and new investors.
Competitive Rates, Broader Access
The instrument was priced competitively, with interest pegged at the 182-day treasury bill rate plus a 2% premium—considerably lower than typical commercial borrowing rates in the market.
“We’re creating a viable alternative to traditional borrowing. This is transformational. It reduces cost of doing business and enhances flexibility,” Ms. Amoah stated.
She urged other large, well-managed companies—especially those that already meet GSE’s corporate governance standards—to explore similar avenues through their bankers and brokers.
“Talk to your bankers, as FEDCO did with First Atlantic Bank and First Atlantic Stockbrokers. Let them work with us at the GSE to give you access to other pools of capital, including institutional investors,” she said.
Building Sustainable Financing Pathways
Ms. Amoah concluded with a call to action: “This is not about replacing creativity in financing, but about applying it responsibly. We want to see more businesses tap into this Commercial Paper Market, reduce their financing costs, and build stronger, more transparent companies.”
The GSE’s commercial paper market forms part of its broader strategy to deepen Ghana’s capital markets and support economic growth by offering businesses flexible financing tools while safeguarding investor interests.
