Consolidated Bank Ghana LTD (CBG) in a strategic partnership as a joint lead arranger has lauded Kasapreko Co. Plc, an indigenous beverage manufacturer, for its ambitious growth plans following the official listing of the Series 1 GHS 600 million Note Programme on the Ghana Fixed Income Market (GFIM).
The funds raised will bolster Kasapreko Co. Plc’s working capital, financing capital expenditures such as operational expansion, and refinancing short-term debts.
Speaking at a joint press briefing in Accra, the Managing Director of CBG, Mr. Daniel Wilson Addo, emphasized the significance of the transaction, indicating that this is the first time an indigenous Ghanaian Bank has worked with an indigenous manufacturing company to raise funding from local pension funds in the public market. This signifies fostering strong partnerships among indigenous companies to overcome financing challenges innovatively.
He added that the funding which is at a cost significantly lower than the Ghana Reference Rate (GRR) for borrowing will cushion Kasapreko Co. Plc’s operations significantly.
He underlined the importance of addressing risks associated with Small and Medium-sized Enterprises (SMEs) while encouraging financial institutions and industries to develop financial structures that meet the evolving risks effectively.
Mr. Addo stated, “This transaction is a testament to our overriding ambition to make an impact in the communities in which we operate. We stand with you in good times or in bad times”.
According to Mr. Addo, the support for Kasapreko Co. Plc highlights the economic impact of CBG’s lending philosophy.
The Managing Director of Kasapreko Co. Plc, Mr. Richard Adjei, welcomed the innovative financing source, describing it as a relatively cheaper capital and sustainable solution for business growth.
Mr. Adjei expressed his gratitude towards CBG for enabling them to explore alternatives beyond traditional Banks. With the infusion, Kasapreko Co. Plc aims to expand production capacity and enhance its participation in the African Continental Free Trade Area (AfCFTA), having already exported products to Kenya and South Africa.
In attendance were Management members of the Consolidated Bank Ghana LTD (CBG) including the Deputy Managing Director of Operations and Technology, Mr. Thairu Ndungu; Deputy Managing Director of Corporate Resources, Madam Nana Ama Poku and Director of Finance and Strategy, Mr. Charles Appiah and other senior executives of the Bank.
Mr. Gregg Pitt, Deputy Managing Director; Mr. Humphrey Hessel-Appiah, Finance Director; Mr. Gerald Bonsu, Commercial Director; and Mr. Isaac Adjei, a Board Member, all of Kasapreko Co. Plc were also present.
Consolidated Bank Ghana LTD (CBG) is wholly owned by the Government of Ghana and operates as a universal Bank with 114 branches in 13 regions of Ghana. The Bank has strong government support, a large SME client network, and a pool of diverse talent.