The bonds were issued to bridge the capital gap between liabilities and good assets it inherited through its establishment out of Unibank, The Royal Bank, Construction Bank, Sovereign Bank and The Beige Bank. The second tranche of that bond issuance, amounting to GH¢4.4 billion will become available for CBG’s use following the impending completion of the ongoing negotiations which are now in their final stages. The impending monetization of the second tranche of special resolution bonds issued by the government could make CBG one of the most liquid banks in the country. Indeed, the loan portfolios of the two failed banks consequently taken over by GCB Bank in August 2017 – UT Bank and Capital Bank – have generated loan recoveries of some GHc480 million since then. The bank is prudently focusing heavily on SMEs and retail banking where it can leverage the most on its geographical reach and its indigenous identity.

Source: GhanaWeb April 17, 2019 20:37 UTC