The government of Ghana has raised 3 billion dollars Eurobond

March 20, 2019 10:16 AM

The Ghanaian government has issued 3 billion dollars Eurobond which will mature over three periods of time.

Ken Ofori-Atta

The three tranches will mature at a period of seven years with 8.75 percent coupon rate, 12 years with 8.125 percent coupon rate, and 31 years with 8.95 percent coupon rate.

The bond was the highest ever for an African sovereign nation. It was oversubscribed by 7 times more.

Earlier this week, the Finance Minister led a government delegation on a roadshow in the UK and the USA.

The delegation comprised officials from the Bank of Ghana and the Ministry of Finance.

Officials of the Ministry of Finance, the government will use 2 billion dollars to support infrastructure development in the 2019 budget while the remaining one billion dollars will be used to retire some maturing debts.

A Ghanaian economist Professor Godfred Bokpin said the coupon rate of the bond was fairly good.

He stated that investors could have demanded more but for the good fundamentals of the economy.

“It was expected looking at how the macroeconomic indicators have shown good results,” he said.