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Ghana could have gotten better Eurobond deal - AfDB Boss

The rate at which we lend, its about London Interbank Offered Rate (LIBOR) plus basis point of 60, which is much lower than what you (Ghana) have been able to raise (through the Eurobond)."

 

President of the the African Development Bank  has revealed that his financial institution  could have given Ghana a better deal on the Ghana's  last Eurobond issue.

In an interview with Graphic the president addressed Ghana's September Eurobond issue, Dr. Akinwumi Adesin said

He added "

The government of Ghana was  on the Eurobond capital market in September to raise a total of $1.5 billion. This was to retire maturing debt and restructure other short term debt.

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The finance minister expectation of an interest rate of 9 % notwithstanding, foreign investors want to part away with their money to Ghana only at a rate of 11 percent. Subsequent negotiations saw Ghana settle for a 10.75 percent interest and a total sum of $1 billion dollars.

The AFDB president however mentioned that arrangements are far advanced for Ghana to get access to relatively cheaper credit from the Bank.

However, Ghana is just at the preparatory stage of being certified to be able to borrow from the AfDB window.

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That not said, I think the right things are being done to solve the issue and I'm sure Ghana will come out of it.

He expressed optimism that Ghana will meet the criteria for financing.

Meanwhile, in an earlier interview with Graphic Business, Dr. Akinwumi Adesin then waded into discussions about  Ghana's current energy crisis and how the AfDB is going to help.

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The second concern was on the economy.

The AfDB boss then further revealed exactly how much the Bank is planning to invest into the energy sector in Ghana.

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