Hearts of Oak chairman Togbe Afede XIV has confirmed lending the club money through his investment firm Strategic African Securities (SAS).
The Chief of the Asogli State in the Volta Region corroborated news broken by GHANAsoccernet.com of monies given the club at a 27 percent interest rate.
Part of the money lent was used to recruit players during the off-season amongst other things the club hopes to acquire.
“When the club needed money to buy players, SAS with the approval of the board extended a loan facility to the club,†he told Angel FM.
“This is because the club is not in the position to get money from any bank, no bank was going to give money to Accra Hearts of Oak as at now.
“So SAS gave Hearts of Oak Ghc 500,000 on the terms of an annual interest rate at 27 percent.â€
The confirmation however comes as a surprise following the club’s declaration as being the wealthiest Ghanaian side after the flotation of club shares earlier this year.
The club realized Ghc 2.5m ($1,326,260) from the share flotation exercise from the projected Ghc 10m ($5,305,039) of which Togbe Afede XIV holds majority shares.
The money realized was expected to kick start a wave of provision of needed club infrastructure while bringing to an end the enormous borrowing from commercial banks at high interest rates.
The club has been saddled in debts following accumulated loans from banks and other financial institutions.
It is now readily unclear what the monies realized from the share exercise is being used for following the latest developments.