Citi Business News has gathered that the 1billion dollar Eurobond that was issued last week will hit the Bank of Ghana (BoG)’s account tomorrow.
[contextly_sidebar id=”HROgjLQ5tldDvKJDGp5rNnJUm7RoEbLw”]This comes after government managed to issue a 1billion dollar Eurobond priced at a coupon rate of 10.75 percent lower than the 11.5 percent earlier demanded by investors.
However at 10.75 percent, the yield on the bonds is still much higher than government’s initial target of 8.5 percent and also higher than the previous one which had coupon rates of 8 and 8.5 percent for its two billion dollar- bond issued.
The bond is a soft amortizing one with tenure of fifteen years, to be paid off in 2028 and 2029.
About $334 million out of the total will be paid later in 2030.
The proceeds would be used for the refinancing of maturing domestic debt.
The 15-year tenure according to the Minister of Finance Seth Terkper means that Ghana has become the first sub-Saharan African country to successfully issue a 15-year bond.
Speaking to Citi Business News a deputy Minister of Finance Mona Quartey said its takes five working days for the money to hit the account.
“It will come according to banking instructions once you have done a trade and you have proceeds, a certain number of days is needed to get the monies hit your account, usually it takes five working days for the money to come in, so it will come.”
We haven’t finished we can raise up to 1.5 billion dollars, we have done 1 billion dollars, it doesn’t mean we are done, deputy Minister of Finance Mona Quartey said.
The Eurobond according to the Ministry of Finance will be used to refinance maturing domestic debts and Ghana’s first Eurobond which is said to mature soon.
By: Norvan Acquah – Hayford/citifmonline.com/Ghana