Ghana Raises $2b Sovereign Bond

Ghana has raised a total of $2 billion from its 2018 sovereign bond issuance, which was concluded on Thursday May 10, 2018 – an indication of a strong investor confidence.

The 10-year bond raised $1.0 billion at 7.627%, while the maiden 30-year bond raised another $1.0 billion at 8.627%.

A statement, issued by the Public Relations Unit of the Ministry of Finance, said the demand for Ghana’s credit peaked in excess of $8 billion, representing an over subscription of three times the targeted amount.

“$750m of the issuance represents new debt, while a portion of the remainder will be used to swap for more expensive existing Eurobonds, as well as other liability management operations,” it said.

It explained that the issuance  had some notable characteristics such as being the first time a Sub – Saharan African country with a rating of B Stable having priced a sovereign Bond at that low costs, indicating a strong investor confidence.

“It is also the first time Ghana has extended its international capital market funding to 30 years,” it stated.

“It must be noted that despite the size, $1.25 billion, which would be used for liability management would not add up to the debt stock of the country as it is debt neutral.”

Source: GNA

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