Consolidated Bank Ghana (CBG) has successfully raised GH¢150 million on the Ghana Stock Exchange to support the growth of Kasapreko Company Limited, a renowned indigenous beverage manufacturer.

This amount, the first tranche of a GH¢600 million facility, will be utilised to bolster the company's working capital, finance capital expenditure, including operational expansion, and refinance short-term debts.

The debt instrument, procured from the stock market, carries a lending rate of 26 per cent, significantly lower than the Ghana Reference Rate of approximately 34 per cent. It also features a fixed rate for three years.

Mr. Daniel Addo, Managing Director of CBG, emphasised the significance of this collaboration between indigenous companies in overcoming financing challenges through innovative means, thereby fostering mutual growth and contributing to national development.

He made these remarks during a joint press briefing held by both companies in Accra on Monday, February 19.

Mr. Addo stated, "The solution to our challenges in funding local corporates and Small and Medium-sized Enterprises (SMEs) lies with us, and it’s really around how banks, other financial institutions, and industry players address the risks inherent in SMEs, in particular."

He further encouraged financial institutions and industry players to confront risks head-on, asserting, "Our business is not to run away from risks, but to manage those risks, and advise local businesses on how best to manage their finances for growth."

"This transaction is a testament to our overriding ambition to make an impact in the communities in which we operate. At the core of our business philosophy is the idea that our lending must be economically impactful," Mr. Addo reiterated.

Assuring continued support to Kasapreko Limited and other Ghanaian businesses, the Managing Director affirmed, "CBG will be with you through the good and bad times."

Richard Adjei, Managing Director of Kasapreko, acknowledged the challenging times Ghanaian companies have faced since the onset of the COVID-19 pandemic. He expressed optimism that this innovative financing source would bolster their operations.

He described the financing scheme from the Ghana Stock Exchange as a relatively cheaper, patient capital, and sustainable source for business growth.

"CBG made us understand that we can fund our business from other sources, and this is to diversify our funding from the traditional banks, raise cheaper and more sustainable funding," he said.

Mr Adjei disclosed that with the GHS150 million, Kasapreko would expand its production capacity and enhance its trade under the African Continental Free Trade Area (AfCFTA), having already exported to Kenya and South Africa.

"With this development, we’ll be able to get more affordable products to the market, and contribute to support communities in Ghana and beyond," the Kasapreko Limited MD said.

Regarding the company's support to the country, he mentioned that since 2017, they had donated more than GHS3 million to the National Cardiothoracic Centre to aid women, children, and others with hole-in-heart problems.

He also highlighted other Corporate Social Responsibility (CSR) activities of the company, which would be intensified going forward. These include the construction of hospitals and the provision of scholarships to brilliant but needy students.

Mr. Adjei further mentioned that they had taken steps to reduce plastics through recycling, using solar energy for production, and were considering biomass and steam for power to address climate change issues.