PETROSOL Platinum Energy PLC has listed the first tranche of its GHS200 million note programme on the Ghana Fixed Income Market (GFIM), following strong investor demand for its maiden GHS100 million issuance.
The company received total bids of GHS178.07 million for the offering, representing an overall subscription rate of 178%.
The four-year Series 1 tranche attracted GHS114.28 million in bids against a GHS50 million target, representing a subscription rate of 229% from 66 underlying investor clients. The five-year Series 2 tranche received GHS63.80 million in bids, exceeding its GHS50 million target by 28% and attracting 18 underlying investor clients.
PETROSOL said the strong response reflected investor confidence in its financial standing and growth strategy. The company plans to return to the market to raise the remaining GHS100 million under the approved GHS200 million note programme.
Proceeds from the initial issuance will primarily be used to strengthen working capital, enabling PETROSOL to shift from credit-based fuel purchases to cash procurement. The company expects this strategy to reduce its cost of sales and improve profit margins. Part of the funds will also support the expansion of its retail service station network.
Speaking at the listing ceremony in Accra, Ghana Stock Exchange Managing Director Abena Amoah described the successful issuance as an example of how Ghanaian businesses can use the capital market to secure long-term financing and fund expansion.
She said the significant oversubscription demonstrated investor appetite for credible private-sector investment opportunities, particularly at a time when access to long-term financing remains a challenge for many businesses.
However, Mrs. Amoah noted that raising funds through the capital market comes with continuing obligations and responsibilities, urging issuers to maintain strong governance and meet their commitments to investors.
SEC Director-General James Klutse Avedzi also commended PETROSOL, noting its growth from four service stations to 109 over the past decade. He said the company’s decision to tap the capital market would support its plans to deepen market penetration and strengthen its competitive position.
Avedzi urged PETROSOL to maintain strong internal controls and ensure that investors are paid in accordance with the terms of the securities issued. He also encouraged the company to consider raising equity capital in the future to further strengthen its balance sheet.
PETROSOL Board Chairman, Mr. Daniel Acheampong said the successful bond listing followed nearly three years of preparation, including efforts to strengthen the company’s governance, financial reporting and operational discipline.
Chief Executive Officer, Mr. Michael Bozumbil said the combined 178% subscription represented a strong vote of confidence from the investment community. He reaffirmed management’s commitment to using the funds for working capital, cash-based fuel procurement and the expansion of PETROSOL’s retail network.
The listing adds PETROSOL to the growing number of corporate issuers on the Ghana Fixed Income Market, providing investors with additional investment options beyond government securities while giving Ghanaian companies another avenue to access long-term domestic financing.