Finance Minister Seth Tekper has assured all projects that will be funded by the last Eurobond will be able to raise enough revenue to cover the bond and its interest.
Ghana successfully issued a 1 billion dollar Eurobond a few weeks ago at a coupon rate of 8.125%.
250 million dollars of the 1 billion dollars will be seed capital for the Ghana Infrastructure Investment Fund while 750 million dollars will be used for capital expenditures, refinancing and counterpart funding requirements.
Concerns have been raised on how the bond will be repaid and whether the associated projects will be able to pay for themselves.
Finance Minister, Seth Tekper speaking to Citi Business News gave the assurance that “many of them will.”
According to him, “even if they break even, it is worth it. For example there is no questioning about the gas processing plant, at the time the CDB loan was being done, remember we had to justify it.”
He indicated that “there was an estimate that was done that showed that the gas processing plant alone could pay for the entire $3billion, not just the $1billion that is going into it.”
By: Anim Kwaku Boadu/citifmonline.com/Ghana