Ghana's planned $1.5 billion Eurobond under threat

quist

September 2, 2015 4:25 PM

The minister of Finance, Seth Terkper has been assuring journalists in Accra that all is set for the floating of the counry’s fourth Eurobond by the end of this month.

There are fears Ghana’s fourth Eurobond may not do well on the international market due to recent developments involving the United States increasing interest rates of its national investment portfolios.

The minister of Finance, Seth Terkper has been assuring journalists in Accra that all is set for the floating of the country’s fourth Eurobond by the end of this month. The minister also allayed all fears that the new U.S interest rates will affect investor interests in Ghana’s Eurobond.

“We have constituted an advisory board who are advising us on what to do in the floating on this bond. So we are aware not only of the situation in the U.S but also China who have devalued their currency."

The $1.5 billion dollars will be used to fill some revenue generation gaps in the 2015 budget. Government has had to redefine its revenue targets and generation strategies this year because of close to 60 per cent shortfall in oil revenue.

Analysts are sounding alarm bells about the timing of the the floating of the Eurobond.

Meanwhile, the finance minister has revealed that government is preparing to issue the five-year domestic bonds which is supposed to help raise close to GHC500 million from the domestic market. The bond which should have been issued in August, was postponed by government for undisclosed reasons.

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