Bayport to raise GH¢300m through corporate bonds

Micro-financial services provider, Bayport Savings and Loans has disclosed it will be raising GH¢300 million through the issue of a corporate note on the Ghana Stock Exchange (GSE) after the required regulatory approval from the regulators of the capital markets.

Speaking at the GSE’s Facts behind the figures, Managing Director of Bayport, Nii Amankra Tetteh stated the company will be expanding its medium-term GH¢200 million note programme by raising another GH¢300 million.

The corporate note issue, if successful will bring the total issue to GH¢500 million. The funds are intended to support the loan book of the company.

He, however, stated that these funds, that is the GH¢300 million will not be raised in one tranche. It will be raised as and when they would need it to support their loan book.
“It is not just to go and get these funds but to make sure that there are specific needs that as a business we have, that we are channelling it at,” he stated.

Mission Drift

Nii Amankra Tetteh also stated that the company is committed to serving its target market that is the low and micro income earners as well as the informal sector.

He said, “So for us, our focus is people who typically will not get support when they go into the banks.”

This comes on the back of some concerns that some microfinance companies in the country have turned away from their core lending mandate and are venturing into other lending areas in the pursuit of making quick profits.

“But for us our commitment over the last 15 years if you take a look at our track record we haven’t gone out of this space. It is something we want to continue to do. It is a space we believe makes a lot of sense for us because of a special skill set that we have us a business. “ the MD added



Lending to women

Mr Tetteh also stated that the company had no specific programme for doling out loans to women but he, however, supports the President’s Nana Akuffo Addo’s directive to MASLOC to ensure that about 50% of all loans given out to borrowers are targeted at women.
He again advanced the argument that looking at the microfinance sector across the world, targeting women in the provision of these services is indeed a smart way of developing a society.

Academic literature on microfinance lends credence to the fact that women are better borrowers as they usually pay back loans on time, all other things being equal.

Financial Performance

A snapshot of the company’s financial position as at December 31, 2017, revealed and comments from the CFO, Gabriel Quartey revealed a 70% growth in net advances. Net advances as at March 2018 stood at GH¢502.7 million
Operating expenses also went up due to a merger of Bayport with another company CFC.

The non-performing loan ratio (NPL) according to their CFO is between 9%-10% and a Capital Adequacy ratio of 19%.

Source:Myjoyonline