Ghana’s govt approves up to USD 1bn Eurobond issue

By bne IntelliNews May 24, 2013

Ghana’s government has approved a Eurobond issue of up to USD 1bn, tentatively scheduled for July 2013, Citi Business News reported, quoting information from the Finance Ministry. The transaction is subject to approval by Parliament. Citi Group and Barclays have been mandated as lead managers on the deal, while domestic investment banks Ecobank Development Corporation (EDC) Stock Brokers and Strategic African Securities have been appointed co-managers. The ministry has noted that the exact amount of the sovereign bond would be determined by market conditions and parliamentary approval. The government plans to use the proceeds from the bond for capital expenditures, chiefly aimed at major infrastructure projects, and refinancing public debt to reduce cost of borrowing.

Ghana sold a USD 750mn 10-year Eurobond in 2007, the first in sub-Saharan Africa outside South Africa. The bond was issued with an annual coupon of 8.5%, but is currently trading at a yield of around 5%.

Ghana, a large producer of oil, cocoa and gold, is rated B1 by Moody’s, B+ by Fitch and B by S&P. The country’s economy is expanding at one of the fastest paces in Africa. It recorded a 7% GDP growth in 2012 and the International Monetary Fund (IMF) expects its GDP growth to be at 6.9% in 2013 and 6.8% in 2014.

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

IMF slashes South Africa’s 2016 growth outlook to 0.7%

The International Monetary Fund (IMF) has lowered sharply its 2016 GDP growth forecast for South Africa to just 0.7% from 1.3% anticipated in October, its World Economic Outlook (WEO) update released ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss