Ghana issues US$3 billion Eurobond despite coronavirus pandemic

Ghana has successfully secured US$3 billion from an oversubscribed bond book value of $6 billion.

This is funds raised from the International Debt Capital Markets.

With this issuance, the country becomes the first Sub-Saharan African Sovereign to issue a USD Eurobond since coronavirus began.

The Ministry of Finance has said proceeds from the issued bond will be used to finance budget deficit. It is expected to commit some money to fund growth-oriented expenditures, and conduct liability management on both external and domestic bonds.

Government in the 2021 budget announced its intention of executing a programme aimed at raising up to US$5 billion through Eurobond, Diaspora bond, Sustainable bond and Syndicated loans. This 2021 Eurobond is thus one of the four vehicles government intends to use to raise up to $5 billion.

In 2018, Ghana successfully raised US$2 Billion, US$3 Billion in 2019 and US$3 Billion in 2020.

Analysts have said the successful issuance of the 2021 Eurobond is a testament to investors renewed confidence in the Ghanaian economy and its managers.

Despite the looming risk of a possible third wave of COVID-19 infections across Europe, generally more volatile market conditions and global trade disruption from the Suez Canal, Ghana has seen strong demand for its sovereign bond offering which was oversubscribed at over $USD 6 Billion.

Ghana’s consistent ability to raise multi-billion-dollar financing and pioneering use of a 4-Year Zero tranche are a testament to Ghana’s hard-won credibility with investors, strong growth prospects and disciplined fiscal consolidation efforts in 2020.

Below is the ministry of finance document: