Business News of Sunday, 5 June 2016
SIC Life, Ghana’s leading Life Insurance Company has been urged to invest in government’s domestic bonds.
According to the Deputy Minister of Finance, Mrs. Mona Quartey, the long term patient capital being managed by the company can assist in national development.
She made the call when the company paid dividend to government in accordance with the current structure which mandates it to pay 80 percent dividend to the state as the majority shareholder.
Government announced through the Finance Ministry last week that it will issue the GH?500million bond to reorganize its debts.
Barclays Bank, Bank of Ghana (BoG), Stanbic Bank, and Strategic African Securities have been appointed as joint book runners to rally investors for the bond and be listed on the Ghana Stock Exchange.
The book runners approach will be used for medium and long-term securities, and will run on a pilot basis alongside the existing central bank auction system.
Mrs. Mona Quartey explained that the book-building approach make calls to the companies for them to decide how much they want to invest in the bond.
“Insurance is a risk management tool but it is also a development tool. It has proven that it is more than just protect but it can also provide for now and the future” she added “As Ministry of Finance, we look forward to you participating in national development through investing in some of these bond issues”.
Mrs. Quartey commended the Board and Management of SIC-Life for the feat chalked and urged them not to hesitate to approach the Ministry on any issue.
Board Chairman of SIC Life, Professor Joshua Yindenaba Abor thanked the Deputy Minister for the support and cooperation they have enjoyed.
He said management will take the advice of investing in government bonds and other corporate bonds as a way of contributing to the development of the capital market.
“We think beyond delivery value to our shareholders, we also need to contribute to the development of the capital market”.
Professor Abor said that SIC Life will work assiduously to improve on their performance with the continuing support of the Finance Ministry.
On his part, Managing Director of the company, Aaron Issa Anafure also pledged their commitment to honour its obligations to the shareholders at all times.