Federated Commodities redeems commercial paper early on Fixed Income Market
By Praisebell Rosemond Larbi
Federated Commodities PLC (FEDCO), one of Ghana’s leading indigenous cocoa buying companies, has successfully redeemed its Commercial Paper obligations on the Ghana Fixed Income Market (GFIM), setting a precedent in the country’s growing capital market.
The company, which made history last year by becoming the first issuer to list Commercial Papers on the GFIM, raised a total of GHS72.5 million under the programme to finance its operations.
FEDCO has now repaid GHS78.36 million, covering both principal and interest, well ahead of its scheduled maturity date of 17 August 2025.
This early and full settlement underscores the company’s financial discipline, commitment to investor confidence, and determination to strengthen Ghana’s corporate financing landscape.
Managing Director of FEDCO, Mrs Maria Adamu-Zibo, described the capital raised through the Commercial Paper as a “strategic leap” for the business.
According to her, the success of the programme demonstrates that well-structured corporate instruments can serve as viable alternatives for financing, reducing reliance on traditional bank lending.
“We are an organisation that lives up to our promise. This early redemption is a clear signal of our credibility and commitment to all stakeholders,” she said, urging other businesses to explore the opportunities that the GFIM offers.
Launched in 2024 by the Ghana Stock Exchange, the Commercial Paper Market provides a transparent and efficient platform for companies to raise short-term funding. FEDCO’s landmark redemption is widely expected to encourage more issuers, particularly within the agribusiness, manufacturing, and services sectors, to consider Commercial Paper as a means of raising working capital.
The transaction was facilitated by a consortium of institutions, including First Atlantic Bank Ghana, First Atlantic Brokers, Deloitte Ghana, G.A. Sarpong & Co., Glico General, GCB Bank PLC, the Central Securities Depository (CSD), and Beacon Ratings. Their combined expertise provided the structuring, rating, custodial, and settlement support necessary for the programme’s success.
