In Ghana's bid to settle its accumulated energy sector debt, it has opened up to receiving domestic bonds worth GHS6 billion ($1.36 billion).
Ghana opens bids for $1.36 billion energy bonds
This energy debt is opened to both foreign and local investors and is backed by the Energy Sector Levy Act
The 7-year and 10-year bonds to be priced on Thursday form part of the government’s plans to raise a total of GHS10 billion to settle debts owed by state power utilities to banks and bulk oil distributors.
Standard Chartered Bank and local lender Fidelity has been named as lead managers for the bond.
This energy debt is opened to both foreign and local investors and is backed by the Energy Sector Levy Act, which is a vehicle set up to issue government-sponsored debt to clear the debts.
The pricing guidance is expected to be released today but markets say the yield could range between 18 and 20 percent.
Settlement is due on Monday, Xorse Godzi, global markets at Standard Chartered Bank Ghana told reporters.
He said GHS2.4 billion would be issued for 7 years and the remaining 3.6 billion would have a 10-year maturity.
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