Finance Minister Seth Terkper has disclosed that government is waiting for signals from its financial advisers on the Eurobond before it hits the international bonds market to raise about 700 million dollars.
Government earlier this year indicated that it will go to the international bonds market to raise one billion dollars but later revised it to 700 million dollars due to high anticipated interest rates.
Speaking at a post supplementary budget briefing in Accra, Mr. Terkper stated that Ghana has a window of opportunity to raise the funds in September or early October.
“Our advisers are advising us, we always appoint advisers for our Eurobond so immediately they tell us we should go to the market, we will go to the market. But we know that, our windows to go out is July or August but I love September or early October”, he said.
Mr. Terkper stated that the most important factor in the issuance of bonds is its associate plans to retire it.
“I think the most important thing is how to manage our bonds. The way we managed our 2007 bond where no contingency measures were put in place to pay those loans always put pressure on how to retire them,” he said.
He explained that the fund will be used to retire the 2007 Eurobond which will mature in 2017.
High interest
Earlier, some economists warned that Ghana will attract a very high coupon rate if it goes ahead to issue the Eurobond.
According to them, investors will demand high rates due to the country’s upcoming elections, inflationary trends as well as its high debt levels among others.
Ghana’s last Eurobond was issued at a coupon rate of 10.75 for 15 years which was described as one of the highest in the region.
Early this year, the Finance Minister led a team of government officials to meet with investors to showcase the country’s growing economic prospects in a non – deal road show.
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By: Lawrence Segbefia/citibusinessnews.com/Ghana