Databank…. A little ahead of its time
Economy 1999
It all began with a yearning to come back home and do something that would be enduring, and rewarding both financially and spiritually. When Ken Ofori-Atta then at Salomon Brothers on Wall Street, New York met His Excellency Afare Donkor, now Ghana’s Ambassador to China in what was an exploratory cocktail for Ghanaian professionals in New York, it really was the beginning of an inspiring success story and journey to reach the commanding heights of Ghana’s capital market.
Ken Ofori-Atta, Keli Gadzekpo and James Akpo, three young, smart, fast track Ghanaians successfully plying their trade in the late eighties, Ken on Wall Street, Keli with KPMG in Washington DC and James a newly mint young MBA graduate back in Ghana hatched the idea of returning home starting an investment bank. And the finance industry was undergoing some challenging changes. What seemed a daunting challenge was an opportunity to be the first in a market undefined and in a state of flux. In the words of Ken Ofori-Atta (currently the Executive Chairman), “We were young, excited, energetic, precocious, knowledgeable and committed, and that was all there was”. By 1990, the three men had all come back home and set up a shop in a small room in the UTC building in Central Accra with a short term (money market) loan of US$25,000.
When Databank was incorporated in 1990, the focus was on research, and the compilation and collation of research data for the financial sector and development of the capital market in particular. As good as it sounded, the beginning was not all roses and it is interesting to note that right at the outset, the name ‘Databank’ made some waves as the regulators debated on the appropriateness of allowing ‘bank’ in the name of a firm that ostensibly did not have banking as one of its objects of incorporation. It was also quite an interesting situation seeing the will to succeed against all odds emanating a dank one room at the old UTC Motors headquarters and Databank staff shuttling around in a beat old Lada car, many years past its best years. Nevertheless from the very start, Databank showed great prospects in Ghana’s capital markets development first in playing a prominent role in compiling background research leading to the capital market in Ghana.
When the Ghana Stock Exchange started operation in 1990, Databank was on hand to compute the first indices the Databank Stock Index (DSI) and Databank Stock Average (DSA) used in measuring the performance of the stock market. It is noteworthy that it was not until 1994 when the Ghana Stock Exchange was able to compute its own index the GSE All-Share Index. By the end of 1990, the Databank team comprised of five transaction hungry young professionals.
The first real transaction was the initial public offering and listing of Super Paper Products Company but by then, Databank had already established a prestigious reputation of cutting edge quality in stock market, industry and economic research. It was a double edged sword because truth be told, the quality was rather intimidating to a market that was not used to it. The practices and high intensity and creativity they brought was clearly a manifestation of the Wall Street and Ivy league background of the founders. Apart from setting the pace for financial journalism with the regular features and articles penned by the young professionals at Databank, finance seminars were also held on topical issues ranging from economic to finance with the twin objectives of informing private sector players and influencing public policy makers. It was quite clear that Databank was destined to play a leadership role in the economy of Ghana. Today,
Databank’s research arm, Databank Research and Information Ltd. (DRIL) produces the most consistent and comprehensive research on Ghana’s macroeconomic, budget, stock market and listed companies. DRIL Research actually maintains a one-stop critical indicators datasheet for the ECOWAS sub-region. Fund managers and institution investors, both home and abroad, rely on the incisive and analytical reports provided by DRIL. In addition, DRIL provides regular and reliable information on financial markets to leading media houses (radio, television and print media) including internationally acclaimed ones such as BBC, CNN, Financial Times and Bloomberg. DRIL also provides regular economic briefing services for local blue chip companies. The Databank Africa Desk gives a comprehensive review of African markets and economies.
Throughout the early 90s, the company operated as Databank Financial Services (DFS) and its stock in trade comprised research, corporate finance and advisory. But the brand name Databank became widely known as various services were provided par excellence. Today DFS sponsored the first listed corporate bond on the GSE, a US$35 million mortgage bond shelf offering for Home Finance Company (now HFC Bank Ltd.).
DFS also was responsible for advising and arranging the first corporate merger on Ghana Stock Exchange. DFS also advised the Ghana government during the liquidity crisis that threatened to cripple Ashanti Goldfields Company (now Anglo Gold Ashanti) and subsequent part sale of interests in assets of the Geita Mine in Tanzania. In addition, DFS facilitated and executed the substantial block of SSB Bank shares (now SG-SSB) worth $21 million to a consortium of investors. Again, DFS was the promoter of the first cross-border listing in West Africa on the Ghana Stock Exchange in a transaction involving Trust Bank Ltd. (The Gambia).
DFS have played a leading role in almost all the financial sector corporate actions on the GSE and were the leading advisors for CAL Bank Ltd.’s IPO which was oversubscribed by 430% in 2004 and the Cedi denominated US$40 million Ghana Telecom bond issue in 2005, which was also fully subscribed. DFS has also engaged in some groundbreaking mandates in Rwanda, Liberia and Uganda.
By 1994, Databank had began to spread its name beyond the shores of Ghana and many of the emerging market funds and international investors who had an interest in Ghana used Databank as its eyes and ears on the ground. It was in this year that Databank Brokerage Limited (DBL) was born. DBL took over the securities trading aspect of Databank’s business.
The advent of DBL ushered in a new era for the Ghana capital markets as it coincided with the real manifestation of international investor interest in our stock market. DBL was as important to the domestic capital markets as it was to the international investors eyeing the Ghana market. With internationally recognized partners Robert Fleming and Co, and Blakeney Management of the UK as well as Ghana Reinsurance and a number of reputable individuals, DBL quickly instituted itself as the Broker of Choice in Ghana with best industry practices comparable to any in the world. In 1994, DBL structured and executed a landmark transaction on GSE by packaging and brokering the US$25 million sale of all Government of Ghana’s shares in seven listed multinationals to a consortium of emerging market and offshore institutional investors including Morgan Stanley Emerging Quantum Emerging Markets Fund, Salomon Brothers and a number of others. The ground breaking transaction introduced foreign investment into the Ghana market. Since DBL has not looked back and has had a yearly average of 55% of the secondary market. DBL has executed most of the largest trades on the GSE as well as acted as lead managers for significant and successful initial public offerings on GSE.
Perhaps even more interesting than DBL, was the establishment of Databank Asset Management Services Limited (DAMSEL) in 1996. DAMSEL provides the investment and asset management service of the company. DAMSEL has over the years proved to be a pioneering leader in the asset management business in Ghana. DAMSEL’s business includes managing private pension provident funds, mutual funds and high net worth clients. DAMSEL is the originator and manager of the first licensed mutual fund in Ghana EPACK. From a modest beginning of an initial 250,000 Cedis from five people in 1996, EPACK has grown to over 330 billion Cedis and over 40,000 share holders as at October 2006, a growth of over 5,600% over the period. Currently, EPACK is the and probably only Pan African Mutual Fund on the African continent today, investing in Ghana, Nigeria, South Africa, Botswana, Kenya, Mauritius, Zambia and Malawi. There are plans to invest in the buoyant Egyptian and Tunisian markets. In 2004, DAMSEL also licensed the first fixed income (money market) mutual fund MFund, another industry first. DAMSEL has lined up a number of funds to be rolled out in the next year to bring significant depth into the investment industry, a true leader.
Today, and over the past sixteen years, Databank has emerged as a full-service investment banking firm offering stock brokerage, corporate finance, asset management, equity research and private equity services. Earlier this year, Databank was graced with further pride when one of its Directors, Ellen Johnson Sirleaf was sworn in as President of the Republic of Liberia. It is now a big family of nearly a 100 members; and in addition to Ken Ofori-Atta and Keli Gadzekpo. Other dynamic directors who have been with the firm for over ten years include Yofi Grant, Opoku Gyamfi Boateng, and Kwesi Amonoo Neizer as Executive Directors. Others in the management include Ernest Akore, Executive Director and Patrick Kingsley Nyinah, Daniel Ogbarmey Tetteh and Oladimeji Adedara as Associate Directors with Geta Striggner-Quartey as General Counsel.
The strategic business units in Ghana are Databank Brokerage Ltd., Databank Asset Management Services Ltd., Databank Financial Services Ltd., Databank Private Equity Ltd., Databank Research and Information Ltd. and Databank Client Services Ltd. each run by its own Executive Director. Today, Databank has about a staff of 100 of which approximately 80% are professionals. But perhaps more interesting is that from a small firm operating out of that one room in the old UTC Motors building, Databank now has its own corporate headquarters and three country subsidiaries – Databank Securities Ltd. in The Gambia, Sierra Leone and Liberia. By the end of this year, Databank will be in Nigeria and that will make it a true regional player and perhaps the only investment banking franchise in the West African sub-region.
Databank Client Services Ltd. (DCSL) was created to cater to the growing needs of an emerging retail business of the Group. The motivation for the creation of DCSL was to ensure that the Databank Group keeps faith with our commitment to give gold standard customer service. That our customers, present and potential, deserve the very best from our staff is not negotiable.
Doubtlessly one of the secrets behind Databank’s success is the caliber of staff that is recruited. The emphasis is on recruiting the best and brightest, so Databank has an unmatched collection of young, dynamic and well-trained human capital. This coupled with an infectiously friendly culture and team spirit, the work ethic is above par. From staff strength of about five people at the beginning, Databank now provides employment for over hundred (100) people. The Executive team includes Ken Ofori-Atta (Executive Chairman), Keli Gadzekpo (Executive Vice Chairman), Yofi Grant (Executive Director, Corporate Finance and Chairman, DBL), Opoku Gyamfi Boateng (Executive Director, Corporate Finance), Kwesi Amonoo-Neizer (Executive Director, DAMSEL), Ernest Akore (Executive Director, DCSL), Patrick Kingsley-Nyinah (Associate Director, DBL), Oladimeji Adedara (Associate Director, DFS), Geta Striggner-Quartey (General Counsel) and Daniel Ogbarmey Tetteh (Associate Director, DRIL).
Databank is currently headquartered in Accra with branches in Tema and Kumasi. There are plans to extend the branch network in the near future. Outside Ghana, Databank has wholly owned subsidiaries I the Gambia Sierra Leone, and Liberia. The Board is committed to setting up in Nigeria in the next few months. The vision is to emerge as a Regional investment bank with a primary focus on asset management and other investment banking services. Today, the perception of Databank’s services catering for only the rich has been dispelled. Databank’s clients stretch through the broad spectrum of the social order through its mutual fund services. While Databank provides the whole range of investment banking services, economic and financial data are still kept to fill the knowledge gap that exists on economies in Africa to enable investors make informed decisions. The quality and innovation that Databank brought to bear on the market was manifest in it winning Best Securities Brokerage Company in Ghana in prestigious Euromoney Awards for Excellence for three years (1197, 1998 and 1999) in succession. Does it get any better than that?
Databank has set itself a vision with five Big Hairy and Audacious Goals (BHAGS) by the year 2010 which are:
- Manage 10% of Ghana’s GDP (at least US$1 billion);
- Reach 2 million Ghanaians with Databank products and services;
- Be in six African countries by 2010;
- Not more than a third of the firm’s revenue from any single country; and
- Initial Public Offering by 2010.
But it is all not about business only, the Databank Foundation, supported by the group of companies has funded a number of initiatives in education and health and every year supports a Christmas party at the ‘childrens’ ward of the psychiatric hospital. Beyond that, Databank is very active in capacity building and social responsibility and its officers are regularly seen panelists, speakers at leadership conferences and committee members for public companies. Databank’s annual Leadership Seminar Series are well acclaimed, in addition to its sponsorship of Africa Leadership Initiative (ALI). Databank recognizes that the road has been rough and like the famous American saying goes, “Pioneers often return home with arrows in their backs”, though there are many that have helped along the way, it is God that has brought all together and thus far, thus its headquarters is emblazoned with the words…”To God be the Glory”.
This is certainly a company that does not only use its opportunities but has created many too. Databank symbolizes the drive that every Ghanaian entrepreneur must have, it is an example of a company that is not held down by apparent limitations but is driven by the will to succeed, has a can do spirit and attitude and yearns to be relevant in the economic growth of our great nation.
With its core values of Leadership, excellence, Humility and Integrity, Databank is set to Leap High for the customer at both the retail and corporate ends of the market and the nation, all to the glory of God. So what else can we say? Leap High DATABANK!
A company on the move.
