Business News of 2014-05-31

Barclays, Stanchart appointed managers for third Eurobond

Government has appointed Barclays Bank, Deutsche Bank and Standard Chartered Bank as lead transaction advisors for Ghana’s next Eurobond issue. Issue date for the bond still remains unclear despite being approved by Ghana’s parliament last December for government to issue up to $1.5 billion.
Earlier finance minister Seth Tekper dismissed reports that government had suspended plans to issue the bond due to unfavourable market conditions. ‘We are aware that emerging matters remain volatile but an explanation that we gave to keep an eye on these developments is not tantamount to withdrawal from the bond issue as has been widely reported in recent days’. He said.
The $1 billion Eurobond will be used to fund capital expenditure in the 2014 Budget. It will also be used as counterpart funding for pipeline projects and the refinancing of domestic and external debt.
Last year Ghana successfully raised $1 billion from the international market in the second issue which was heavily oversubscribed. The latest move to appoint transaction advisors for the Eurobond is in accordance with the Public Procurement Act.
Local firms Databank, EDC Stockbrokers a subsidiary of the Ecobank Group and Strategic African Securities have also been appointed as co- managers of the transaction. Dentons and JLD & MB Legal Consultancy have also been appointed as international and local counsel for the transaction respectively.
A statement from the finance ministry signed by a deputy finance minister Cassiel Ato Forson said the transaction advisors will work closely with a Transaction Committee with representatives from the Ministry of Finance, Bank of Ghana and the Attorney-General’s Department in the preparatory work for the execution of the transaction.
It further states that although the transaction team is expected to start work immediately on the preparatory activities, government will continue to monitor the market for a suitable execution window.
Source: Citifmonline.com
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