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Hords Ltd. lists on Ghana Stock Exchange with support of FinGAP

CARANA applauds the successful listing of Hords Ltd. on Ghana’s Alternative Market (GAX), which was facilitated by a business advisory service (BAS) provider within the USAID-FinGAP network. Hords Ltd., a food and beverage manufacturer, successfully listed 80,000 shares in an initial public offering on Ghana’s Alternative Market (GAX) of the Ghana Stock Exchange in August, raising over $1.1 million in equity that will be used to pay off existing debt, invest in a new factory, and increase working capital.  Hords Ltd. is the first of FinGAP-assisted SMEs to list on the GAX, and its success will serve as a model for future listings.

Since inception in 2013, USAID-FinGAP has facilitated traditional bank loans for SMEs securing much-needed finance for SME growth and development in the agriculture sector. While the project has facilitated more than $40 million in private financing and investment, FinGAP recognizes the importance of flexible, long-term capital for growth without the high interest rates and repayment schedules that accompany many traditional loans. While few agribusiness SMEs are currently listed on the GAX, FinGAP is working with its network BAS providers to look to equity as an alternative source of agribusiness financing for their clients. By expanding its toolbox to include equity, FinGAP is increasing the scope of available sources of finance for its beneficiaries. Hords Ltd.’s successful listing on the GAX is a groundbreaking development for both FinGAP and Ghanaian agribusinesses.

Published October 2015.