Knowledge

Author: Ollen Machimbirike

Category: ,

Date: 2 December 2016

Verdant Capital successfully arranges GHS 13 million loan facility for First Allied Savings and Loans

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Verdant Capital has successfully arranged for First Allied Savings and Loans, a leading Ghanaian financial institution, a loan facility amount of GHS 13 million (approx. USD 3.2 million) from a leading international impact investor. This facility is the first tranche of a private placement debt deal of GHS 60 million (approx. USD 15 million), the balance will close early in the new year. The institution has total assets of around USD 90 million with about 63% of its loan book is represented by micro-enterprise loans and 34% by SME loans.
SMEs and micro-enterprises are critical for the economic and social development of Ghana’s developing economy as they play a major role in creating jobs, generating income for low income earners, boosting economic growth, social stability and contribute to the development of the private sector. However, lack of funding from financial institutions confronts most SMEs and micro-enterprises in the country and this has been cited as a major constraint to economic growth. This highlights the need for ongoing support to grow financial institutions focused on these segments.
The institution has been active in the financial inclusion space following the launch of its agency business model, branded “AlliedAgent” in June 2015. The company has so far 150 agents and 25 branches and is the largest financial institution based in Kumasi, Ghana.

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