Government completes successful Eurobond roadshow; Deal to be announced soon

Government will in the coming days issue Ghana’s 2018 sovereign bond after a successful deal roadshow.

The exercise, which seeks to raise some Seven Hundred and Fifty Million Dollars ($750M) of a budgeted One Billion ($1B) of new debt, has received rave reviews from international capital market investors.

A government delegation comprising officials of the Ministry of Finance have been engaging investors since May 3 and selling Ghana’s growth prospects and financing requirements.

A statement issued by the Ministry of Finance on Wednesday said the government team is in the process of completing pricing arrangements with investors and will soon announce the final deal.

Ghana is also considering raising up to an extra 750 Million Dollars depending on market conditions during the year to commence a build up to repay bonds, which mature in 2022.

Deputy Information Minister Kojo Oppong Nkrumah said “we are excited at the level of interest shown in Ghana’s instruments. What remains now is the concluding arrangements after which we will announce the size of the deal. Ghana’s recent macro-economic performance has been impressive and should hopefully lead to a reward of lower rates to the benefit of the nation. We are however very mindful of yields and will not just take any amount at any cost because we are mindful of the effect of interest payments on future fiscal space.”

The government plans to utilise the 750M new debt raised for the development of infrastructure nationwide including roads and housing.