Ghanaian cocoa buyer Federated Commodities PLC (FEDCO) has raised GHS72.5mn ($4.6mn) in the first tranche of its GHS200mn ($12.8mn) Commercial Paper programme, marking the first-ever listing on the Ghana Fixed Income Market (GFIM) under the Ghana Stock Exchange’s (GSE) newly launched Commercial Paper Market.

The capital raise, which FEDCO described as a “strategic leap”, is aimed at expanding its operations beyond cocoa into logistics, commodity trading, and food processing. The company is constructing an 18,000-metric-ton rice mill in Kampung Dari and a food processing plant to tap into rising food prices and increase returns for stakeholders.

“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,” said FEDCO Managing Director Maria Adamu-Zibo at the listing ceremony.

She added: “Our joint investments with partners amount to $20mn - over GHS300mn - in cash and in-kind support for our sourcing communities.”

Adamu-Zibo noted that FEDCO’s sustainability programmes now benefit more than 41,000 of the 70,000 farmers in its network, positively impacting over 400,000 people nationwide. By the end of the 2021/2022 cocoa season, the company had become Ghana’s third-largest Licensed Buying Company (LBC).

Ghana Stock Exchange Managing Director Abena Amoah hailed the issuance as a turning point for corporate access to short-term financing. 

“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,” Citi News quoted her saying. 

She added the successful issuance reflects growing confidence in Ghana’s capital markets and affirms the GSE’s commitment to offering diverse financing tools for businesses.

Director-General of Ghana’s Securities and Exchange Commission, Dr James Klutse Avedzi, reaffirmed regulatory support, adding: “We remain committed to fostering market confidence, enforcing compliance, and strengthening collaborations with the GSE, Central Securities Depository (CSD), and market intermediaries.”

The Commercial Paper Market, launched by the GSE in 2024, offers a transparent platform for businesses to raise short-term funding. FEDCO’s milestone listing is expected to inspire further corporate issuances.

The transaction was facilitated by First Atlantic Bank Ghana, First Atlantic Brokers, Deloitte Ghana, G.A. Sarpong & Co, Glico General, GCB Bank PLC, the CSD, and Beacon Ratings.