Federated Commodities PLC (FEDCO), a leading indigenous cocoa buying company, has raised GHS 72.5 million in the first tranche of its GHS 200 million Commercial Paper programme.
This marks a historic first listing on the Ghana Fixed Income Market (GFIM) since the Commercial Paper Market’s launch by the Ghana Stock Exchange (GSE) in 2024.
At the listing ceremony, FEDCO’s Managing Director, Maria Adamu-Zibo, highlighted the company’s growth.
“From a 5.7% market share in 2017/2018, we now command a 10.5% share. International partner resource support has grown from 2.3% to 12% over the same period,” she noted.
She added that over 41,000 of the 70,000 farmers under its network now benefit from FEDCO’s sustainability initiatives, with the company’s initiatives further positively affecting over 400,000 lives nationwide.
“Our joint investments with partners amount to $20 million—over GHS 300 million—in cash and in-kind support for our sourcing communities,” she stated, adding that the company rose to become the third-largest Licensed Buying Company (LBC) in Ghana by the end of the 2021/2022 cocoa season.
The company is now expanding beyond cocoa into logistics, commodity trading, and food processing, with an 18,000-metric-ton rice mill in Kampung Dari and a food processing facility underway.
Adamu-Zibo described the capital raise as a “strategic leap” aimed at capitalising on rising food prices, expanding FEDCO’s impact, and delivering more value to farmers and stakeholders.
Commenting on the development, the Managing Director of the Ghana Stock Exchange, Abena Amoah, stated, “This landmark issuance underscores the effectiveness of the Commercial Paper Market in providing businesses with alternative short-term financing opportunities. We are excited to see the first corporate entity leverage this platform for their short-term capital needs and look forward to more corporate issuances in the coming months.”
She further noted that this successful issuance demonstrates the increasing confidence of corporate entities in Ghana’s capital markets and reinforces the GSE’s commitment to providing diversified financing solutions for businesses while offering investors good returns.
The Special Guest of Honour, John Awuah, in his address said, ’’This inaugural issuance serves as a critical test case, and honoring payment obligations will be essential in building and sustaining investor trust and confidence in similar instruments going forward.’’
‘’In his remarks, the Director-General of the Securities and Exchange Commission, Ghana, Dr. James Klutse Avedzi, reaffirmed the regulator’s commitment to fostering Document Classification: Public market confidence, enforcing compliance, and strengthening collaborations with the GSE, Central Securities Depository (CSD), and market intermediaries.’’
The Commercial Paper Market offers a transparent platform for short-term financing. FEDCO’s listing is expected to pave the way for more corporate issuers to explore similar capital-raising avenues.
The transaction was facilitated by First Atlantic Bank Ghana, First Atlantic Brokers, Deloitte Ghana, G.A. Sarpong & Co, Glico General, GCB Bank PLC, the Central Securities Depository (CSD), and Beacon Ratings.
CBN
