Ghana set to issue fourth Eurobond

Ghana is set to issue its fourth Eurobond of $1 billion at a coupon rate of 10.75 per cent, with a 15-year tenure.

The principal will be repaid in three instalments of $333 million in 2028 and 2029, and $334 million in 2030.

A statement from the Ministry of Finance said the bond was oversubscribed, exceeding the $1 billion target by 100 per cent.

The Ministry noted that the 15-year tenure means Ghana has become the first sub-Saharan African country outside South Africa to successfully issue a 15-year bond.

“ The bond was issued after an 8-day Road show that took the Ghana team, led by Mr. Seth Terkper, Minister for Finance and Dr. Henry Kofi Wampah, the Governor of the Bank of Ghana to London, Los Angeles, San Francisco, Boston and New York”, the statement said.

Mr Seth Terkper explained that the issuance of the bond was in line with Ghana’s new debt management strategy and the proceeds would be used for the refinancing of maturing domestic debt.

Like the three previous issues, this year’s bond is reported to have attracted investors from the United Kingdom, Europe, the United States, Middle East and Asia.

By Emmanuel Odonkor