Indigenous oil marketing firm PETROSOL Platinum Energy PLC has recorded a resounding vote of confidence from institutional investors after its maiden GH¢100 million corporate bond issuance was oversubscribed by 78 percent, attracting total bids worth GH¢178.07 million.
The historic market entry saw PETROSOL list its Series 1 and Series 2 Notes on the Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange (GSE). The offer represents the first tranche under the company’s newly approved GH¢200 million Note Issuance Programme sanctioned by the Securities and Exchange Commission (SEC) and the GSE.
Investor appetite heavily surpassed expectations across both tranches. The four-year Series 1 Note attracted GH¢114.28 million in bids against its GH¢50 million target a 229 percent subscription rate from 66 investor clients. Meanwhile, the five-year Series 2 Note drew GH¢63.8 million against a GH¢50 million target, achieving a 128 percent subscription rate from 18 investor clients.
The strong demand comes on the heels of a challenging macroeconomic climate marked by high inflation and tight domestic liquidity.
Speaking at the listing ceremony, Daniel Acheampong, Board Chairman of PETROSOL Platinum Energy PLC, highlighted that the success was anchored on years of rigorous corporate governance overhauls.
“This listing is the result of nearly three years of deliberate preparation by the Board and Management, strengthening our governance, our reporting and our discipline so that when we came to the market, we would come as a credible institutional counterparty, not merely a hopeful borrower,” Acheampong said. “We are proud to bring PETROSOL to the Ghana Fixed Income Market of the Ghana Stock Exchange on the strength of that credibility, and the Board will hold Management to the same discipline in ensuring these proceeds are applied exactly as promised to our investors.”
PETROSOL plans to utilize the capital to shift its fuel procurement strategy from credit terms to cash purchases, significantly cutting sales costs, expanding profit margins, and driving retail station expansion across the country.
Chief Executive Officer of PETROSOL, Michael Bozumbil, reflected on the firm’s growth trajectory and assured investors of strict capital deployment.
“We built this company from a small petroleum business consulting practice into one of Ghana’s highly respected OMC brands, and we did it during some genuinely difficult years for the Ghanaian economy,” Bozumbil noted. “A combined 178% subscription on our first issuance is a strong vote of confidence from the investment community, and Management is fully committed to deploying this capital exactly as set out to investors: working capital enhancement, cash-basis procurement and retail network expansion, nothing else.”
Market leaders also lauded the deal as a landmark moment for Ghana’s private sector debt market.
Managing Director of the Ghana Stock Exchange, Abena Amoah, noted that the transaction underscores the capacity of the local capital market to finance corporate growth beyond government treasury instruments.
In his keynote address, Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA), Simon Madjie, urged corporate Ghana to leverage capital markets while emphasizing post-listing accountability.
“PETROSOL’s listing demonstrates how Ghanaian businesses can use the capital market to access long-term funding, strengthen governance and broaden their sources of finance,” Madjie remarked, reminding the company that public market participation requires sustained transparency, robust financial controls, and risk management.
The issuance was lead-arranged by a syndicate comprising Absa Bank Ghana Ltd and Databank Brokerage Ltd, supported by KPMG as reporting accountants and Fidelity Bank Ghana Ltd as note trustee. PETROSOL intends to return to the capital market to raise the remaining GH¢100 million in line with its long-term expansion blueprint.