PETROSOL Platinum Energy PLC, a Ghanaian leading ISO-certified oil marketing company, on Monday listed the first tranche of its GHS200 million (approximately $17.94million) note programme on the Ghana Fixed Income Market (GFIM), after the GHS100 million issue attracted bids worth GHS178.07 million.
The oversubscription marks PETROSOL’s maiden issuance under the programme, which was approved by Ghana’s Securities and Exchange Commission (SEC) and the Ghana Stock Exchange (GSE).
The company’s four-year Series 1 tranche attracted GHS114.28 million in bids against a GHS50 million target, representing 229% subscription from 66 underlying investor clients.
The five-year Series 2 tranche received GHS63.80 million in bids against a GHS50 million target, representing 128% subscription from 18 underlying investor clients.
PETROSOL said the strong demand reflected investor confidence in the company’s credit profile and growth plans.
The company plans to return to the market to raise the remaining GHS100 million under the note programme, in line with its strategic plan.
PETROSOL said proceeds from the initial issuance would be used primarily to strengthen working capital, allowing it to shift fuel procurement from credit purchases to cash purchases, reduce its cost of sales and improve margins.
Part of the proceeds will also be used to expand the company’s network of retail service stations.
GSE, SEC hail PETROSOL bond listing as investor demand hits 178%
The Managing Director of the Ghana Stock Exchange (GSE), Abena Amoah, has described PETROSOL Platinum Energy PLC’s maiden bond issuance as a timely demonstration of how Ghanaian businesses can leverage the capital market to finance growth.
Speaking at the listing ceremony in Accra, Amoah said the substantial oversubscription of PETROSOL’s GHS100 million bond programme showed that the capital market could provide businesses with access to long-term financing while creating new investment opportunities.
“Your notes programme, substantially oversubscribed, arrives at the right time. It proves that Ghanaian businesses can look to Ghana’s capital markets to finance their ambitions, while opening new avenues for investors to share in your growth,” Amoah said.
She congratulated PETROSOL’s Board and Management for what she described as a bold step, noting that the GSE had closely followed the transaction through to completion.
According to Amoah, access to long-term capital remains a major constraint for Ghana’s private sector, despite significant pools of domestic savings held by banks, pension funds and insurance companies.
She said these funds require credible investment opportunities capable of supporting productive businesses and economic growth.
However, she cautioned that accessing the capital market comes with significant responsibilities for issuers.
“Access to the capital market comes with responsibility. A listing is not only an achievement. It places the issuer on a continuous journey and creates long-term obligations,” she said.
SEC urges PETROSOL to safeguard investor interests
Director-General of the Securities and Exchange Commission (SEC), James Klutse Avedzi, commended PETROSOL for sustaining its operations for more than two decades and expanding its retail network from four service stations to 109 over the past decade.
Avedzi said PETROSOL’s strategy to deepen market penetration, strengthen its competitive position and accelerate growth was now supported by the capital market.
“The vision of PETROSOL PLC to deepen market penetration, strengthen its competitive position and accelerate growth is finally on track with the capital market as a reliable partner,” he said.
He urged the company to strengthen its internal controls and systems to ensure that securities issued under the programme are serviced in accordance with their terms and conditions.
Such measures, he said, would help protect investors and preserve confidence in Ghana’s capital market.
Avedzi also expressed the expectation that the relatively lower cost of financing secured through the capital market would support PETROSOL’s operations. He encouraged the company to consider raising equity capital in the future to strengthen its balance sheet and increase its market capitalisation.
The SEC, he added, remained committed to expediting the review and approval of relevant applications while maintaining market integrity.
PETROSOL pledges disciplined use of bond proceeds
PETROSOL Board Chairman Daniel Acheampong said the successful listing was the result of nearly three years of preparation focused on strengthening the company’s governance, reporting and financial discipline.
“This listing is the result of nearly three years of deliberate preparation by the Board and Management, strengthening our governance, our reporting and our discipline so that when we came to the market, we would come as a credible institutional counterparty, not merely a hopeful borrower,” Acheampong said.
He said the strong demand for both bond tranches demonstrated investors’ recognition of the work undertaken by the company.
Acheampong pledged that the Board would ensure the funds raised were applied strictly in accordance with the commitments made to investors.
PETROSOL Chief Executive Officer Michael Bozumbil said accessing the capital market had been part of the company’s long-term growth strategy.
He said the company had evolved from a small petroleum business consulting practice into an established oil marketing company despite operating through challenging periods for Ghana’s economy.
“A combined 178% subscription on our first issuance is a strong vote of confidence from the investment community,” Bozumbil said.
He said Management remained committed to using the proceeds for working capital enhancement, cash-based fuel procurement and expansion of the company’s retail network.
PETROSOL notes begin trading on GFIM
The listing adds PETROSOL to the growing number of corporate issuers on the Ghana Fixed Income Market (GFIM), as Ghana’s capital market institutions seek to deepen the domestic market beyond government securities.
Trading in PETROSOL’s Series 1 and Series 2 notes on the GFIM is scheduled to begin following the listing.
Settlement, registry and depository services for the notes are being provided by the Central Securities Depository (GH) Ltd.
The GSE, SEC and other market institutions have increasingly sought to encourage Ghanaian companies to tap domestic capital markets for longer-term financing while providing institutional investors with alternatives to traditional government securities.
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