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.
US-based oil and gas exploration and production (E&P) company Kosmos Energy has announced the start of commercial operations at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) ... more
South Africa’s state-owned power utility Eskom is exploring opportunities to support Bitcoin mining, artificial intelligence (AI) development, and data centres to help its future ... more
Nigeria’s Economic and Financial Crimes Commission (EFCC) has arrested a former CFO of the Nigerian National Petroleum Co. Ltd (NNPCL), as well as a former managing director of 125,000 barrels per ... more