- The Bank of Ghana has acknowledged the receipt of the $3 billion Eurobond which was issued a few days ago
- The funds, received on Tuesday, February 11, 2020, would be used to shore up Ghana's foreign reserves
- Ghana's foreign reserves stood in excess of $5 billion as at November 2019
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The Bank of Ghana has announced the receipt in its accounts of the $3 billion Eurobond which was issued earlier.
An unnamed official of the central bank explained that the funds from the three-pronged bond deal reached the central bank on Tuesday, February 11, 2020.
YEN.com.gh understands that the proceeds from the bond would be used to provide an improved cover for the bank’s foreign reserves which stood in excess of $5 billion as at November 2019.
Per a report by citibusinessnews.com, the government, in February 2020, made an eighth appearance at the Eurobond market.
Information available shows that it raised a total of $3 billion in different bonds at various maturities.
Records show that the longest dated bond was forty-one years together with a seven year and 14-year dated bonds.
The proceeds of the bonds have arrived at a time when the cedi has experienced an appreciation by over four percent against the dollar since the year began.
The bond, which was secured in three tranches was sold with 7-year, 14-year, and 41-year maturities.
The government accepted US$1.25 billion for the 7-year-bond at a coupon rate of 6.375 percent.
This compares favourably to an exact tenor bond government issued in 2019 with a coupon rate of 7.875 percent.
Also, the government was successful in securing US$1 billion with a maturity period of 14 years at a rate of 7.75 percent. This rate also trumps the 8.125 percent the government accepted for a 12-year bond issued as part of the 2019 Eurobond.
In other news, some investors have described Ghana’s economy as one to watch in the year 2020, given recent indicators.
Information available shows that in 2019, investors regarded the country’s economy as a slow one, with creeping inflation and a declining currency that has dueled with the dollar for 25 straight years.
However, everything changed in the year 2020 as the cedi is now regarded as the best-performing currency in the world.
Per a report by Bloomberg, investors are currently in a rush to buy into the nation’s $3 billion Eurobond issue and foreigners are gaining interest in its local-currency debt.
Reports say investors who expressed fears about election-related spending are now praising the government's fiscal prudence and financial reforms.
This was reflected in the sale of the Eurobond two weeks ago when orders were placed for almost five times the original amount.
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