This was done by a delegation led by the Finance Minister Ken Ofori-Atta on Tuesday, February 4, 2020.
ADVERTISEMENT
Ghana secures $3 billion Eurobond at cheaper rates, almost 350 percent subscription received
Ghana has completed the issuance of a $3 billion Eurobond in three instalments with interest rates better than what was realised in similar bonds issued last year.
Ghana secures $3 billion Eurobond at cheaper rates, almost 350 percent subscription received
The three-tranche bond was sold with 7-year, 14-year, and 41-year maturities.
A member of the delegation in an interview with journalists explained that the government accepted $1.25 billion for the 7-year-bond at a coupon rate of 6.375 percent.
This compares favourably to an exact tenor bond government issued in 2019 with a coupon rate of 7.875 percent.
ADVERTISEMENT
Also, the government was successful in securing $1 billion with a maturity period of 14 years at a rate of 7.75 percent. This rate also trumps the 8.125 percent the government accepted for a 12-year bond issued as part of the 2019 Eurobond.
The last of the three bonds issued was a 41-year bond, which happens to be the longest dated bond issued by an African country. The government accepted to borrow $750 million at a rate of 8.75 percent for the longest dated bond which matures in 2061.
The yield for the longest-maturity instrument dropped from the initial guidance of 9.125% and is the highest-yielding sovereign Eurobond of the year so far.
Prior to the 41-year bond, the longest tenor bond issued by an African country was a 31-year bond with a coupon rate of 8.95 percent also issued by Ghana in 2019.
Although the government set out to borrow $3 billion in its eighth Eurobond appearance, it received offers to the tune $15 billion – reflecting investors’ appetite for Ghana’s bond
ADVERTISEMENT
The proceeds from the bond issuance are expected to be used for refinancing of some maturing debts with the rest committed to provided infrastructure.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
Recommended articles
How 1 woman became first lady of 2 different countries — she married 2 presidents
How parents, teachers can recognise when a child is being bullied
Ladies! Here are 5 things you shouldn't say to your man during sex
It's illegal to publicly celebrate your birthday in this country
Don't pay new transport fares - GPRTU and GRTCC urge Ghanaians
Reflo’s makes a splash at Madina market with product showcase and community engagement
Akufo-Addo will sign the anti-gay bill if it reaches his desk – Miracles Aboagye
400 acres of cocoa farms at risk due to MIGOP Mining Limited's exploration activities