Ghana’s $1b Eurobond issue set for parliamentary scrutiny

…Citi Group, Barclays confirmed as lead managers

The $1 billion Eurobond Ghana plans to issue in July 2014 is set for possible approval by the country’s lawmakers after further scrutinies are done.

This was after Cabinet approved of the move, the Finance Ministry announced May 23, 2013 in a statement.

According to the statement, Cabinet approved the constitution of a Transaction Team towards the issuance of the sovereign bond comprising the Ministry of Finance and the Bank of Ghana to manage the preparatory activities for the issue.

“Based on anticipated market conditions and financing needs, a transaction size of up to $1billion was recommended to and approved by Cabinet. It should be noted that the transaction is subject to prior approval by Parliament,” it said.

The Finance Ministry added that the exact amount is also subject to variations that might be dictated by market conditions and parliamentary approval.

The Ministry also confirmed that CitiGroup and Barclays have been selected as lead managers for the transaction while EDC Stock Brokers and Strategic African Securities act as co-managers.

According to what Cabinet approved, proceeds from the bond will be used for Payment of counterpart funds for capital projects; Capital expenditures approved in the 2013 Budget (with priority given to self-financing projects); and Refinancing of public debt to reduce the cost of borrowing.

By Ekow Quandzie