Ghana to pay transaction advisers $2.1m for $1b Eurobond auction
Ghana is expected to pay about $2.1 million as transaction cost for the country’s second Eurobond planned to be issued next month July 2013, according to a parliamentary report.
The Ghanaian government has chosen Barclays Debt Capital and Citi Group to be joint managers of the $1 billion bond transaction which received parliamentary approval June 26, 2013.
EDC Stockbrokers and Strategic African Securities (SAS) were also named to co-manage the deal.
Citing a report of the Finance Committee of Parliament, the Ghana News Agency reports that the bond issue will cost the country some $2.1 million as “fees and expenses on transaction advisers”.
The issuance of the bond allows Ghana to raise funds on the international capital market to bridge the country’s infrastructural deficit and refinance its debts.
According to Parliament’s report, about $284 million of the bond would be utilized on capital expenditures in the 2013 budget while $103 million would be used as counterpart funding for projects already approved.
It adds that an amount of $363 million of the bond would go to re-financing of maturing domestic debt to reduce cost of borrowing and a further $250 million would be employed on partial and gradual redemption of the Ghana 2017 Eurobond, reports the GNA.
The bond has a maturity period of seven to ten years.
By Ekow Quandzie
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