Govt to issue GHc500m bond Thursday

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1.8922494Ghana will issue a five-year GH?500m domestic bond this week as it seeks cheaper sources of funding to support its budget and restructure debt.

Thursday’s bond will be sold through the book-building system that mainly targets institutional investors and offshore buyers, the arrangers told Reuters.

They did not disclose any details on pricing, but interest rates in Ghana are among the highest in the region, reflecting the fiscal challenges the country faces.

The yield on its benchmark 91-day treasury bill stood at 22.8160 per cent on June 17.

The world’s second largest cocoa producer and Africa’s no. 2 gold miner has turned to the IMF for help to fix an economy dogged by a high public debt and inflation, securing a three-year assistance programme.

Ghana raised 746.4 million cedis ($193 million) in a similar local bond transaction in March for a yield of 24.75 per cent.

It has also issued several other securities, including one of three-year maturity.

The West African nation, which is due to hold elections in November, also has plans to issue Eurobonds of up to $1 billion, amid concerns from the IMF about the country’s public debt, which stood at $26.3 billion, or 70 per cent of GDP, at the end of December.

The government has appointed Standard Chartered Bank, Citibank and Merrill Lynch as advisors for the Eurobond, the fifth since the country’s 2007 debut.

Unlike last year when the local cedi depreciated more than 30 per cent to the dollar, it has withstood the downward pressure this year. It was trading at 3.93 to the greenback by midday on Monday, down 3.4 per cent since the start of the year.

-Reuters

 

ABOUT: Nana Kwesi Coomson

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A Freelance Journalist, Entrepreneur and Philanthropist. Editor-in-Chief of www.233times.com. A contributory writer for Ghanaian Chronicle Newspaper. An alumnus of Adisadel College where he read General Arts. He holds first degree in Bachelor of Arts from the University of Ghana; Political Science (major) and History (minor). He has also pursued MSc Corporate Social Responsibility (CSR) and Energy with Public Relations (PR) at the Robert Gordon University in the United Kingdom. He is a 2018 Mandela Washington Fellow (YALI) who studied at Clark Atlanta University on the Business and Entrepreneurship track. His mentors are Rupert Murdoch, Warren Buffet, Sam Jonah, Kwaku Sakyi Addo and Piers Morgan

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