Eurobond at a more favourable yield of
9.25 percent compared to its last sale,
officials have said.
The country’s Finance Minister, Seth
Terkper told the Reuters news agency
that the sale was oversubscribed with
orders exceeding $4 billion dollars – a
development he said reflected investor
confidence in the west African nation’s
economy.
#Ghana issues $750 mn
Eurobond with favourable yield
ow.ly/OTmV30438fm
11:05 AM - 9 Sep 2016
7 4
CNBC Africa
@cnbcafrica
The issuance of the bond is expected
to bring in much needed cash to
balance the government’s budget
ahead of presidential and parliamentary
elections scheduled for December, in
which president John Mahama is
seeking a second term in office.
The sale of the latest Eurobond, the
fifth comes on the heels of the
commissioning of a new oil field with
an expected production capacity of up
to 25, 000 barrels per day.
An earlier attempt to launch the bond
in August was aborted due to higher
than expected yields demanded by
investors, and after the country’s
parliament passed a law allowing
central bank financing contrary to IMF
restrictions.
Ghana’s fifth Eurobond, according to
Ghanaian news portal, myjoyonline.com
attracted investors from the United
Kingdom, Europe, the United States,
Middle East and Asia. The notes, the
website said will be listed on the Irish
and Ghana Stock Exchanges.
The bond with a weighted average life
of five years, is expected to be used
mainly to refinance a 2017 debt issue.
Repayment will be over three years
from 2020 to 2022.
Ghana also announced a further tender
of its 8.5 percent 2017 notes and
Tekper said the government was
aiming to buy back about $400 milion
after it bough back around $100 million
last month, reports Reuters.
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