Ghana’s Eurobond attracted avalanche of attention from investors who scrambled for the bonds by putting in bids from all over the world for the three-tranche Eurobond sale that is expected to raise a total of $3 billion. The Eurobond was oversubscribed as investors mostly from Asia and Europe had pledged to lend Ghana about $15 billion – five times more than the $3 billion the Ministry of Finance was asking for.
This development according to market watchers is a show of confidence in the Ghanaian economy, and it is instructive that this is coming a day after the Bank of Ghana won The Best Central Bank of the Year Award.
One source said the bonds could be six-year, 14-year and 40-year bonds and would mature in 2027, 2035 and 2061 respectively, as another source said the bonds would likely be priced between 6.5 per cent and nine per cent. The long term one, the 2061 bond, is around 8.95 per cent.
Read also:Ghana Increases Passport Fees, Introduces 48-page Passport Booklet
The offers from the European and the Asian investors came at a time when markets in the United States of America (USA) had not opened. As analysts say that the subscription would have been far more if the markets in the United States were opened. The t Ghana’s 2020 Eurobond sale team led by the Minister of Finance, Mr Ken Ofori-Atta, was expecting the bids to swell further when investors in the USA start participating in the offer.That should help drive the price down further, the source said, noting that the transaction could be closed today. It, however, added that the team was exploring the possibility of dropping the seven-year bond for just the 14-year and the 40-year bonds.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry