GSE launches new market to provide funding for businesses
The Ghana Stock Exchange (GSE) has launched a Commercial Paper Market to provide short-term financing to businesses in Ghana.
The market is set to augment the depth and liquidity of Ghana’s securities landscape, ultimately propelling the nation’s economic development.
The new market offers an avenue for private pension funds, keen to explore investment diversification, and companies seeking alternative sources of short-term finance beyond conventional banking channels.
Managing Director of the GSE, Ms Abena Amoah rallied stakeholders and investors to patronize the new product and make it work.
“Let’s embrace the opportunities this CP Market offers. Let’s work together to ensure its success and sustainability. By doing so, we are laying the groundwork for a brighter, more prosperous future for Ghana and its people. Only then, will GSE have achieved its mission of being relevant to Ghana’s economic transformation by providing a diversified platform for raising capital and for investments, she added.
The MD pledged the GSE’s commitment to drive a pipeline of innovative solutions, such as an Umbrella Guarantee Facility for the debt market; a framework for Benchmark Bonds and developing Indices that support product innovation.
“We commit to deepen our partnership with all stakeholders for new markets and products: shall we set up a Foreign Exchange Market Committee, a Derivatives Market and so we are saying that to go far, we must go together,” she told partners.
By bridging the gap between investors and companies in need of such financing, the Commercial Paper Market endeavors to usher in a new era of financial flexibility and risk reduction.
The Commercial Paper has a tenure of 270 days and can be issued at a discount to the face value or be issued at an interest rate.
