Gov’t raises 3 billion dollars Eurobond
Government has issued 3 billion dollars Eurobond which will mature over three periods of time.
The three tranches come at a maturity period of seven years with 8.75 percent coupon rate, 12 years with 8.125 percent coupon rate, and 31 years with 8.95 percent coupon rate.
The bond which was the highest ever for an African sovereign nation was oversubscribed by 7 times more.
The Finance Minister, Ken Ofori-Atta earlier this week led a government delegation comprising officials from the Bank of Ghana and Ministry of Finance on a road show in the U.K and U.S.A.
According to officials from the Ministry of Finance, government will use 2 billion dollars to support infrastructure development in the 2019 budget while the remaining one billion dollars will be used to retire some maturing debts.
Commenting on the coupon rate, Professor Godfred Bokpin described the price of the bond as fairly good.
He stated that investors could have demanded more but for the good fundamentals of the economy.
“It was expected, looking at how the macroeconomic indicators have shown good results,” he said.
Source: citinewsroom