Ghana sets record; becomes 1st African country to issue 41 year bond

Ghana sets record; becomes 1st African country to issue 41 year bond

- Ghana has set a record as the first African country to issue a 41-year bond, Finance Minister, Ken Ofori-Atta, has revealed

- He explained that $3 billion was successfully raised in the international capital market

- According to him, the three tranches the bond came in were priced at 6.375%, 7.875%, and 8.750% respectively

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The Minister of Finance, Ken Ofori-Atta, has informed Parliament that Ghana has been officially recognised as the first African country to issue a 41-year bond and a second tri-tranche bond.

Details show that Ghana successfully raised $3 billion in the international capital market.

The money came in three tranches of 6-year, 14-year, and 41-year Eurobonds of $1.25 billion, $1.0 billion, and $750.00 million respectively on February 4, 2020.

Ghana sets record; becomes 1st African country to issue 41-year bond
Finance Minister, Ken Ofori-Atta Source: Bloomberg
Source: UGC

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Per a report, Ofori-Atta stated that Parliament earlier approved a request by the government to raise $3 billion in December 2019.

This was to help finance expenses budgeted in 2020 that are growth-oriented, as well as the conduct of liability management operations.

He further explained that the Eurobonds were priced at 6.375 percent, 7.875 percent, and 8.750 percent respectively.

Ofori-Atta added that the bond came with the lowest ever coupon rate for Ghana.

He went on to say that the order book was five times oversubscribed despite the initial challenges that came with the outbreak of the coronavirus.

According to him, it translated into a peak order book in excess of $15 billion and follows the 2019 Eurobond which was oversubscribed seven times.

In other news, Ken Ofori-Atta has disclosed that Ghana’s public debt stock currently stands at GHc255,727.1 billion.

Presenting the 2020 mid-year budget review in Parliament, he indicated that the outbreak of the coronavirus has led to the tightening of global financial conditions.

Notwithstanding, he went on, that Ghana’s $3 billion International Capital Market financing was conducted in the first two months of the year 2020.

READ ALSO: Government to pay temporary incomes to sacked workers - Finance Minister

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Source: Yen

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