No Result
View All Result
Sunday, May 28, 2023
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    BoG Act needs clarity, improvement for easy implementation – Governor

    Don’t shortchange customers; use standardized measurements – Traders told

    We’re ready to provide liquidity support to banks – BoG reiterates

    Utility tariff increase will cripple businesses – AGI

    GRA arrests 3 shop owners for not issuing VAT invoices

    GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

    Mahama speaks at 2023 Korea Africa Business Summit

    Chinese involvement in Ghana’s economy not problematic – Nana Addo

    Joe Jackson cautions govt against immediate return to international market

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    BoG Act needs clarity, improvement for easy implementation – Governor

    Utility tariff increase will cripple businesses – AGI

    GRA arrests 3 shop owners for not issuing VAT invoices

    GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

    Chinese involvement in Ghana’s economy not problematic – Nana Addo

    Ghana Association of Banks welcomes provisions for recapitalization

    BoG commissions Financial Industry Command Security Operations Centre

    GSA to clamp down on sub-standard cables, electrical products dealers

    GNPC hasn’t signed any deal with PetroSA – Freddie Blay clarifies

  • TECHNOLOGY

    Ghana gets $300 million from US to build first-of-its-kind data center

    Telcoms industry players urged to partner government to promote clean energy transition

    Dominion University To Partner With USA Organisations To Set Up Centre Of Excellence For Artificial Intelligence

    Cyber Security Authority commences licensing and accreditation regime

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Ghana withdraws $672m back-tax demand from MTN Group

    MTN to fight $773m tax bill from government

    Telcos to implement 1% E-Levy charge from today

    Huawei Equips 500 Traders in FinTech

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Mining propels Ghana to beat growth estimates in fourth quarter

    BoG pushes for improvement in IMF’s lending framework to boost continent’s access to resources

    Foreign exchange: Several African countries have a shortage of US dollars – why this happens and how to fix it

    Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

    Silicon Valley Bank crisis: What led to stock crash, what lies ahead?

    Medical devices market projected to expand by $ 7.1 billion by close of year

    African Union adopts Africa Prosperity Dialogues AfCFTA action plan

    Third World Network Africa urges Africans to be strategic about AfCFTA

    5 important things to know about the African Continental Free Trade Area agreement

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    BoG Act needs clarity, improvement for easy implementation – Governor

    Don’t shortchange customers; use standardized measurements – Traders told

    We’re ready to provide liquidity support to banks – BoG reiterates

    Utility tariff increase will cripple businesses – AGI

    GRA arrests 3 shop owners for not issuing VAT invoices

    GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

    Mahama speaks at 2023 Korea Africa Business Summit

    Chinese involvement in Ghana’s economy not problematic – Nana Addo

    Joe Jackson cautions govt against immediate return to international market

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    BoG Act needs clarity, improvement for easy implementation – Governor

    Utility tariff increase will cripple businesses – AGI

    GRA arrests 3 shop owners for not issuing VAT invoices

    GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

    Chinese involvement in Ghana’s economy not problematic – Nana Addo

    Ghana Association of Banks welcomes provisions for recapitalization

    BoG commissions Financial Industry Command Security Operations Centre

    GSA to clamp down on sub-standard cables, electrical products dealers

    GNPC hasn’t signed any deal with PetroSA – Freddie Blay clarifies

  • TECHNOLOGY

    Ghana gets $300 million from US to build first-of-its-kind data center

    Telcoms industry players urged to partner government to promote clean energy transition

    Dominion University To Partner With USA Organisations To Set Up Centre Of Excellence For Artificial Intelligence

    Cyber Security Authority commences licensing and accreditation regime

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Ghana withdraws $672m back-tax demand from MTN Group

    MTN to fight $773m tax bill from government

    Telcos to implement 1% E-Levy charge from today

    Huawei Equips 500 Traders in FinTech

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Mining propels Ghana to beat growth estimates in fourth quarter

    BoG pushes for improvement in IMF’s lending framework to boost continent’s access to resources

    Foreign exchange: Several African countries have a shortage of US dollars – why this happens and how to fix it

    Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

    Silicon Valley Bank crisis: What led to stock crash, what lies ahead?

    Medical devices market projected to expand by $ 7.1 billion by close of year

    African Union adopts Africa Prosperity Dialogues AfCFTA action plan

    Third World Network Africa urges Africans to be strategic about AfCFTA

    5 important things to know about the African Continental Free Trade Area agreement

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

Low investor confidence reduced 5th Eurobond maturity

bycitibusinessnews
September 14, 2016
in Government, Local Economy, Top Stories
Economist Dr. Lord Mensah

Economist Dr. Lord Mensah

Share on FacebookShare on TwitterShare on Whatsapp

Some economists have strongly suggested that the lack of investor confidence in the Ghanaian economy, led to the reduced maturity period for government’s 750 million dollar Eurobond.

According to a Senior Lecturer at the University of Ghana, Dr. Lord Mensah, the lack of trust in the Ghanaian economy led to a coupon rate of 9.25%.

“This shows how investor confidence in the Ghanaian economy is declining. Probably, government made the attempt to go for the long term but then they were not getting the funds that they wanted because the investor or institutional investor would like to commit possibly for a longer term only if they have trust in the economy,” he stated.

ADVERTISEMENT

Dr. Lord Mensah therefore suggested efforts are put in place to improve the economy by channeling returns on bonds into more productive ventures and reap positive outcome.

“Already, the global markets are not favoring per say and so investors will not invest their monies in Ghana. Also, looking at Ghana, investors know that a chunk of the revenue being generated internally (aside moral hazards associated with it), have been put into businesses or projects that are sub-standards.”

“The investor also foresees a situation where you will not be able to raise money to pay back when there is trouble and then also the management of the economy” he added.

Government last Thursday (September 8, 2016) issued its fifth Eurobond of 750 million dollars at a yield of 9.25 percent a few points lower than the last one which was at 10.75 percent.

The bond which though was oversubscribed with orders exceeding 4 billion dollars has a tenor of 5 years.

The bond has been met with heavy criticisms from economists including Dr. Mahamoud Bawumia, a former Deputy Governor of the Bank of Ghana.

The 5 years for maturity of the Eurobond is the shortest period in the history of Eurobond issues in Ghana and the principal will be expected to be repaid in three installments of US$250 million in September 2020, September 2021 and September 2022.

Government has been forced to put on hold issuing of this particular Eurobond a number of times because of unfavorable market conditions.

It was forced to put on hold the launch last month [August] after investors quoted interests much higher than government had expected.

Interest for the last Eurobond issued last year [October, 2015] which was backed by a World Bank guarantee of 400 million dollars was 10.75 percent, the highest attracted so far.

The high interest rates that were demanded by investors have been attributed to the country’s current economic challenges as well as high debt levels.

Proceeds from the Eurobond will be used to retire the first Eurobond which matures next year [2017].

–

By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana

Related Posts

Banking And Finance

BoG Act needs clarity, improvement for easy implementation – Governor

byNii Larte Lartey

Dr Ernest Addison, the Governor of the Bank of Ghana, says there is a need to improve the Bank’s (Amendment)...

Read more

Don’t shortchange customers; use standardized measurements – Traders told

We’re ready to provide liquidity support to banks – BoG reiterates

Utility tariff increase will cripple businesses – AGI

GRA arrests 3 shop owners for not issuing VAT invoices

GNPC-PetroSA deal: Freddie Blay threatens to sue CSOs

Chinese involvement in Ghana’s economy not problematic – Nana Addo

Next Post

SA is not in recession - Gordhan

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.