Quantum Terminals an operator in Ghana’s petroleum sector became the first non-financial institution to issue Corporate Bond on Ghana’s Fixed Income Market at the Ghana Stock Exchange (GSE) with the listing of its 10 million US Dollar Bonds on the bourse on Thursday.
The cedi (local currency ) equivalent of the amount is 45 million Ghana cedis and is the first tranche of a total of GH¢140 million bond programme planned by the company with a 75% partial credit guarantee from GuarantCo, for the benefit of pension fund investors that have subscribed to the issue.
Executive Chairman of Quantum Terminals, Emmanuel Egyei-Mensah, said at the listing that the capital would enable the company construct new storage terminals across the country as well as three storage facilities, including LPG storage across the country.
‘The first one would be completed in June and the remaining two would be completed in the course of the year,’ Egyei-Mensah said.
He explained, “This is not only the first 10-year guaranteed and secured notes in Ghana, but also the first by a non-financial institution in the country and GuarantCo’s guarantee has been very critical in facilitating this transaction. This is a great example of how development finance institutions should be partnering with the private sector.
The next level of the company’s strategy according to him was to construct three refilling plants at Atuabo, Kumasi and Tema at the cost of US $ 52 million by next year.
“GuarantCo is delighted to have partnered with Quantum Terminals Limited on this landmark corporate bond issue, which will support the construction of essential energy infrastructure. Ghana’s capital markets have a crucial role to play in the development of the country’s infrastructure sector,” GuarantCo CEO, Lasitha Perera said.
With this new investment opportnity it is expected that Quantum Terminals will deepen its support for the uptake of LPG for domestic use, substituting coal and wood whose fumes when used in cooking have detrimental health impacts on residents.
Women and children, in particular, on average spend more time in the house compared to men and will see significant health benefits from substituting wood/charcoal with zero emission LPG.
