Fidelity Bank Ghana, one of Ghana’s leading banks, has over the years initiated strategic projects with key industry players to support the growth and development of financial and capital markets in Ghana.
The Bank has specialized teams in a number of strategically important sectors that support Ghana’s real economy. They recognize that achieving sustained economic growth requires strong partnerships with critical market players if they are to achieve lasting positive change. One of their main markets of concentration is the country’s financial and financial markets.
Fidelity’s commitment to supporting Ghana’s economic growth led to the creation in 2017 of a specialized unit to develop tailor-made solutions to help the private and public sectors take advantage of the country’s vibrant financial and capital markets.
This successful setup quickly became a solid model for the market, providing a suitable framework for other participants to create new and important lines of business to further support the growth of our markets.
Commenting on Fidelity’s contribution to Ghana’s financial and financial markets, Sam Aidoo, Deputy Managing Director of Fidelity Bank, said: increasingly important, local financing of the country’s development projects. The successful issuance of the recent US $ 3.025 billion Eurobond by the government of Ghana is proof of the enormous funding opportunities available to government and businesses in the financial and capital markets space.
Mr Aidoo added that this recent Eurobond issue marked not only the first time that a zero coupon USD denominated bond has been issued by an emerging country, but more importantly that its success is largely attributed to the fact that more than half of the new funds raised in this new tranche came from the base of local Ghanaian investors.
He added that this result was due to the strong collaboration between Fidelity Bank and other local financial institutions.
Over the years, the Bank has spearheaded a number of innovations and developments in Ghana’s financial and capital markets which have resulted in substantial financial gains for the country. Some of these development projects involve the energy and construction sectors, as well as international financial transactions such as the aforementioned US $ 3.025 billion Eurobond issuance.
On international transactions, Fidelity Bank was the first local bank to handle the logistics of a Eurobond issue for Ghana. Prior to 2018, leading any aspect of a country’s access to global financial markets was considered the sole preserve of multinational banks in developed countries.
Following Fidelity’s success as a logistics bank for issuing Eurobonds 2018, the status quo has changed and other local banks have had the opportunity to contribute to Ghana’s Eurobonds issuance. For the past four years in a row, Fidelity Bank has assisted the public sector by working with Joint Leaders and other local banks to ensure successful Eurobond issues.
Locally, Fidelity Bank continues to add value to Ghana’s future economic growth potential. In July 2017, the Bank was appointed co-lead manager of the GHC 10 billion ESLA Plc bond program under which medium and long-term redeemable bonds denominated in cedi were issued. Over GHS 7 billion has been raised since the program’s inception and its success has created the model financing solution for other cedi-denominated bond issues.
In order to deepen participation in the local market, in 2018 Fidelity Bank was appointed Joint Bookrunner for Medium and Long Term Public Sector Bonds. This bold move resulted in an increase in local participation from 34.57% in December 2017 to 72.10% in March 2021, largely thanks to the efforts of Fidelity Bank and its partners.
Additionally, to lead innovation in the local financial market, Fidelity Bank executed in December 2018 the very first cross-currency total return swap of approximately US $ 40 million with Société Générale and Frontclear. Until now, currency exchange transactions have not been pursued by industry players due to the myriad of challenges parties face when executing cross-border transactions.
The successful execution of this transaction made it clear to the international community and local players that with the right structuring, cross currency transactions can be executed in frontier markets like Ghana.
According to Fidelity’s divisional director of financial and capital markets, Prince Thomas Essilfie, “Fidelity Bank seeks to expand its product offering in the national financial and capital markets by partnering with the public and private sectors, retail investors and institutions and national banks to promote economic development. “
He added that “the Bank believes that its financing solutions and product offerings will deepen knowledge of the national banking space and further contribute to capacity development of national financial and capital markets.”