Business News of 2014-03-27

Govt denies suspending Eurobond issue

Government has denied reports that it has suspended plans to issue the one billion dollar Eurobond.
A deputy finance minister Kweku Ricketts-Hagan told Citi Business News the reports are untrue. ‘That is categorically not true, currently as I speak we are preparing the processes to go to the market and I can tell you that the processes are ongoing……We seek the authorization so that we can prepare in all the processes so that whenever we think that things are favorable, we can then go the market’.
The issue which is expected to take place next month will be used to refinance debt and fund infrastructure projects in the country.
Ghana’s parliament last December approved proposals for a 2014 Eurobond and said the government could issue up to $1.5 billion.
Ghana in all has issued two Eurobonds.
Last year it successfully raised $1 billion from the international market in the second issue which was heavily oversubscribed.
But there are reports that the issuance of this year’s bond would be put on hold due to unfavorable market conditions.
Speaking to Citi Business news, the deputy minister of finance Kweku Ricketts-Hagan said processes are currently ongoing and the bond will be issued when conditions improve.
‘The numbers have moved against us if I would be honest with you, obviously with what rating agencies and others have said about our economy, the numbers are not looking good. But things are improving, though gradually it might not be that visible, we are seeing the improvement but there’s a long way to go. so obviously if the market conditions are not right, our own position is creating numbers that are not favorable to us, then we will have to hold on until the numbers or the situation is right’.
Source: citifmonline.com
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