Eurobond proceeds to support gov’t projects

On-going projects in the road, works and housing and the energy sectors would be the first to benefit from the Eurobond proceeds.

750 million dollars has hit the accounts of Governments after it raised 1 billion dollars from the international capital markets last month.

Speaking to Joy Business after engaging the media at the Flag Staff house on the Eurobond, Finance Minister, Seth Terpker however says the disbursement would be done in line with the budget.

Mr. Terpker also gave a breakdown on how the money would be used:

"First, the partial use of the bond issue proceeds to refinance maturing domestic debt will reduce the reliance on the short-end of the market, especially for domestic capital projects, and the long lead times being experienced in sourcing and implementing some projects related to multilateral and bilateral funds.

"In addition, given that access to concessional funds will dwindle as a result of the country’s attainment of a lower middle income status, the tapping of the global bond market and provisioning for existing bonds will strengthen Ghana’s credentials as a regular and responsible borrower in those markets.

"Secondly, the availability of the Eurobond proceeds will speed up the implementation of development projects in the 2013 budget. In particular, counterpart funding can be made available for previously approved projects to enable these projects to be completed.

"Finally, the early redemption of the Ghana’s debut 2017 Eurobond will reduce the rollover risk of refinancing the entire $750 million bond when it matures in 2017."