Ghana government considering floating rare $50bn Century Bond

desmond frimpong

September 3, 2018 5:15 PM

Discussions about ultra-long term debts have been fraught with uncertainty due in part to interest rates fluctuations that can lower yields for investors; however, some analysts say there is a growing demand for these types of bonds.

Ghana may soon join the likes of Argentina, Austria and Mexico to issue the rare 100-year bonds to finance national projects.

President of Ghana Addo Dankwa Akufo-Addo announced this at a ceremony in Beijing to sign some eight Ghana-China co-operation agreements.

“The Ministry of Finance and the economists in Ghana are looking at floating a $50 billion Century Bond. This will provide us with the resources to finance our infrastructural and industrial development. We are hoping that, at some stage, China will interest itself, and take a part of it as China’s contribution to Ghana’s development,” he told Chinese President, Xi Jinping on Saturday.

Many of these long-term bonds contain an option that lets the issuer to partially or fully repay the debt before the scheduled maturity.

With Ghana exiting the IMF programme by the end of this year, President Akufo-Addo stressed that the country is determined never to return to that arrangement.

“In order to do so, we are looking seriously at how we can secure sources of long-term finance that will allow us to deal with our infrastructural development, and also realise the vision of a Ghana Beyond Aid.”

desmond frimpong