News Guide Africa

Tag: Ghana Fixed Income Market (GFIM)

  • Investor confidence soars as PETROSOL’s maiden GH¢100m bond draws GH¢178m in bids

    Investor confidence soars as PETROSOL’s maiden GH¢100m bond draws GH¢178m in bids

    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.

     

  • Ghana financial markets begin festive lull in activity …but underlying performance remains strong

    Ghana financial markets begin festive lull in activity …but underlying performance remains strong

    With just a few days to go before the year-end festivities, Ghana’s financial and commodity markets are exhibiting a mix of seasonal slowdown in activity and continued underlying strength with regards to ;performance, according to traders, regulators and market observers.

    Equity markets have remained resilient as 2025 draws to a close, with the Ghana Stock Exchange (GSE) Composite Index continuing its upward trajectory, despite signs of reduced trading activity on the ground.

    On Thursday, December 18, 2025, the GSE Composite Index advanced to 8,745.74 points, adding to a string of gains during the fourth quarter of this year and lifting overall market capitalization to about GH¢168.97 billion.

    Trading volumes, however, have been declining, with last Thursday’s session seeing just 1.52 million shares traded valued at GH¢6.15 million, down sharply from all three earlier sessions last week.

    A broker at one Accra firm noted, “There’s still interest and healthy price momentum, particularly in large capitalized stocks like MTN Ghana and listed financial stocks, but clients are beginning to step back from active trading as the holidays approach.”

    Indeed, while earlier in the year markets posted robust year-to-date returns and broad gains across many listed stocks, daily activity typically thins in mid-December as institutional investors finalize positions before year-end.

    There will only be three trading days this week since Thursday and Friday are public holidays to commemorate Christmas Day and Boxing Day respectively. Next week there will be only four trading days rather than five since New Year’s Day a Thursday will be a public holiday too. Traditionally formal economic activity conducted from offices experience a lull during these last two weeks of the year.

    The Ghana Fixed Income Market (GFIM) the principal platform for trading government and corporate bonds and treasury instruments – has reflected continued depth and robust cumulative activity through 2025, with total traded volumes reported over GH¢214 billion by October of this year.

    According to market observers, much of the year’s strength has been driven by sustained investor interest in sovereign instruments, even as liquidity conditions were tightened by domestic debt management programmes earlier in the year.

    However, a senior fixed-income trader with a multinational bank told Economy Times “We’re seeing a bit of a lull in outright volume this fortnight – a mix of traders booking profits and holding off on new positions. But overall the market has depth and solid participation, especially in government securities.”

    On the inter-bank foreign exchange market, the Bank of Ghana has signaled a scaled-back foreign exchange intermediation programme for December, reflecting typical seasonal softening in demand for foreign exchange as corporates and businesses close books and prepare for holidays.

    The Bank of Ghana (BoG) auctioned about US$100 million each on December 2 and 4 and subsequently reduced its planned monthly target to around US $800 million, down from higher volumes earlier in the year.

    Despite this, daily inter-bank market data shows the Ghana cedi trading around GHS 11.49 to the U.S. dollar in the third week of December, suggesting orderly conditions and relatively contained volatility ahead of the festive season.

    A currency trader at one commercial bank in Accra said, “The cedi has been calmer of late, partly because the central bank’s FX interventions earlier in the year bolstered reserves and guided expectations. This time of year simply sees lower corporate flow demand, which naturally reduces turnover.”

    Ghana Commodity Exchange (GCX) experienced strong growth in commodity trading in 2024 driven by maize and soybean contracts, with turnover more than doubling to approximately GH¢24.23 million and significant increases in traded volumes and settlement values. Although performance data has not been released for any part of 2025, market sources close to GCX activity say trading in key agricultural futures and spot contracts has remained active up until mid-December, particularly as agribusinesses hedge ahead of post-harvest movements. However, they also observe that the approach of year-end is typically accompanied by quieter deal-making.

    Across markets, smaller brokers and retail investors are reporting a noticeable shift into “holiday mode.” One Accra-based retail investor lamented that many brokers have already reduced operating hours or trading and settlements staff are absent, making execution slower and dampening short-term turnover.

    A bond dealer at a local brokerage added, “We are seeing fewer quote requests and lower bid-offer interaction as institutional desks wrap up positions, which is a typical pattern every December.”

    Regulators emphasize that seasonal slowdowns are normal and that underlying fundamentals across markets remain supportive of renewed activity in early 2026.

    Bank of Ghana officials frame the moderated FX activity as a transitional phase, noting that policy and market infrastructure improvements through 2025 – including stronger reserve buffers and transparent FX operations – have set the stage for more resilient markets in the new year.

    Analysts expect that early 2026 market activity will feature renewed trading vigour across equity, fixed income, FX and commodity segments, as institutional investors reposition and new economic data emerges.

    For now, Ghana’s financial and commodity markets appear to be blending a holiday-influenced slowdown in turnover with continued positive fundamentals, suggesting that while year-end celebrations may temper activity, the broader trajectory remains upwards.

     

    By Toma Imirhe

     

     

     

  • Ghana’s bond market to anchor Africa’s capital market integration – BoG Governor

    Ghana’s bond market to anchor Africa’s capital market integration – BoG Governor

    Ghana’s fixed-income market is fast emerging as one of Africa’s most credible and resilient bond platforms, with GHc214 billion in turnover so far in 2025.

     

    According to Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama the milestone marks not just a recovery from Ghana’s recent debt crisis but the beginning of a new era of regional financial leadership.

     

    Speaking at the 10th Anniversary of the Ghana Fixed Income Market (GFIM) in Accra, Dr. Asiama said Ghana’s bond market is now well-positioned to anchor regional capital market integration under the African Continental Free Trade Area (AfCFTA) Financial Integration Framework.

     

    “Our goal is to make Ghana the reference point for transparency and innovation in African fixed-income markets. “We have moved from rebuilding trust to leading by example.” he said.

     

    The Governor added that Ghana is aiming to become a regional benchmark for transparency, innovation, and sustainability, much like Nigeria’s FMDQ and Morocco’s Casablanca Finance City, both of which have become continental hubs for financial services.

     

    The transformation follows a turbulent period for Ghana’s financial markets. During the domestic debt exchange, trading volumes on the GFIM plunged from GHc 230 billion in 2022 to just GHc 98 billion in 2023 as confidence in the government’s fiscal credibility waned.

     

    However, by October 2025, trading activity had rebounded to GHc 214 billion, signaling a strong resurgence of investor confidence and a restored sense of market stability.

     

    Dr. Asiama described the episode as both a financial and emotional test for Ghana’s economy one that taught policymakers three crucial lessons.

     

    “Credibility is capital, without it, no reform endures. Predictability breeds confidence – markets price stability before they price returns. And coordination is protection – fiscal and monetary policies must align,” he said.

     

    The Governor credited the sharp rebound to enhanced coordination between fiscal and monetary policy, as well as consistent efforts by the Bank of Ghana and the Ministry of Finance to restore market discipline.

     

    He noted that Ghana’s broader macroeconomic turnaround including inflation dropping from 54 percent to 8 percent, a 35 percent appreciation of the cedi, and reserves covering nearly five months of imports — has bolstered investor sentiment and deepened liquidity on the GFIM.

     

    “Behind every decline in inflation lies a rise in discipline, and behind every cedi of appreciation lies a recovery of trust,” Dr. Asiama said, adding that Ghana’s bond market has once again become a mirror of the country’s economic recovery.

     

    With its renewed credibility and modern trading infrastructure, Ghana’s fixed-income market is being positioned to play a pivotal role in continental capital market integration.

     

    Dr. Asiama said the next decade of GFIM’s growth will focus on depth, diversity, and digitalisation creating a market that not only trades bonds but transforms economies.

     

    “This anniversary is not just a celebration of a platform, but of partnership,” he said. “Together, we can deepen markets, expand possibilities, and secure Ghana’s financial future.”