No Result
View All Result
Friday, March 24, 2023
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Support Ghana’s efforts to restore debt sustainability – IMF to bilateral creditors

    Talks with China over $1.7bn debt positive, encouraging – Ofori-Atta

    China to seek proper resolution with Ghana over $1.7bn debt

    GSE signs MoU with MIIF to increase listing of mining companies

    Ghana Best Cocoa Farmers Association lauds COCOBOD boss

    Consider cocoa pricing in your legislation – COCOBOD CEO to EU

    Fitch upgrades Ghana’s Long-term local-currency IDR from ‘RD’ to ‘CCC

    Producer Price Inflation drops to 50.8% in February 2023

    Growth and Sustainability Levy will stifle growth of local oil service companies – Upstream Petroleum Chamber

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

    Industry experts convene to discuss diversification strategies for pension funds

    It’s time to give women top posts in multilateral institutions – GCBL Chairman 

    Global Chamber of business leaders enters into partnership with IEFS

    Gold for Oil policy will save Ghana $4.8bn annually – Veep

    Energy Minister scheduled to speak on Ghana’s near-term opportunities at NAEPEC 2023

    Standard Chartered appoints Ebenezer Twum Asante as Chairman of Board of Directors

    Abena Amoah named in WFE’s top 20 women leaders

    International Women’s Day: Female engineering students tour Karpowership

    BoG directs banks to submit prudential reports on sex-disaggregated basis

  • TECHNOLOGY

    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

    Africans urged to bolster adoption of Bitcoins

    What does 2023 hold? Predictions in payments for the year ahead for Africa

    Meta considered building a Twitter competitor to capitalize on Elon Musk’s ‘crisis’ at company

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

    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

    $130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

    Feed Africa Summit: African Development Bank to commit $10bn to make continent breadbasket of the world

    Nigeria’s national debt hits an all time as the country struggles with repayment

    What does 2023 hold? Predictions in payments for the year ahead for Africa

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

    Support Ghana’s efforts to restore debt sustainability – IMF to bilateral creditors

    Talks with China over $1.7bn debt positive, encouraging – Ofori-Atta

    China to seek proper resolution with Ghana over $1.7bn debt

    GSE signs MoU with MIIF to increase listing of mining companies

    Ghana Best Cocoa Farmers Association lauds COCOBOD boss

    Consider cocoa pricing in your legislation – COCOBOD CEO to EU

    Fitch upgrades Ghana’s Long-term local-currency IDR from ‘RD’ to ‘CCC

    Producer Price Inflation drops to 50.8% in February 2023

    Growth and Sustainability Levy will stifle growth of local oil service companies – Upstream Petroleum Chamber

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

    Industry experts convene to discuss diversification strategies for pension funds

    It’s time to give women top posts in multilateral institutions – GCBL Chairman 

    Global Chamber of business leaders enters into partnership with IEFS

    Gold for Oil policy will save Ghana $4.8bn annually – Veep

    Energy Minister scheduled to speak on Ghana’s near-term opportunities at NAEPEC 2023

    Standard Chartered appoints Ebenezer Twum Asante as Chairman of Board of Directors

    Abena Amoah named in WFE’s top 20 women leaders

    International Women’s Day: Female engineering students tour Karpowership

    BoG directs banks to submit prudential reports on sex-disaggregated basis

  • TECHNOLOGY

    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

    Africans urged to bolster adoption of Bitcoins

    What does 2023 hold? Predictions in payments for the year ahead for Africa

    Meta considered building a Twitter competitor to capitalize on Elon Musk’s ‘crisis’ at company

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

    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

    $130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

    Feed Africa Summit: African Development Bank to commit $10bn to make continent breadbasket of the world

    Nigeria’s national debt hits an all time as the country struggles with repayment

    What does 2023 hold? Predictions in payments for the year ahead for Africa

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

Finance Minister explains US$ 2.25bn bond

bycitibusinessnews
April 18, 2017
in Banking And Finance, Government, Top Stories
Ken Ofori-Atta - Finance Minister

Ken Ofori-Atta - Finance Minister

Share on FacebookShare on TwitterShare on Whatsapp

Finance Minister, Ken Ofori Atta has defended the competitive nature of the recent bond issue by government to the tune of 2.25 billion dollars, describing it as a mark of renewed investor confidence in the country’s economy.

Government has been criticized for the rate of 18.95%  to 19.85% at which the four bonds were issued to investors over a 5 to 15 year period.

But speaking exclusively to Citi Business News, ahead of the Spring Meetings in Washington DC, USA, Mr. Ofori-Atta stated that government had pulled off a deal hailed by the financial markets worldwide as impressive.

ADVERTISEMENT

“We have heard comments about the rates we got and a comparison with the last sovereign bond that we did, which had a guarantee from the World Bank. I think it was 10.75% that was a dollar bond and we raised a billion so we are talking about dollars when we talk about 10.75% and this one(the latest bond issue) is really a domestic bond that we are referring to. Therefore there will be differences in interest rates and differences in risks because you have both the inflation factor and you have a currency issue that you have to deal with but the beauty of what we did was that we also had a call option on that which means that in future as interest rates come down after five years we can call on these things. I think the market really hailed it and we are going to Washington a lot more confident than before because the Breton woods institutions know that the market response to what we are doing is good.” he said.

The finance minister further enumerated the benefits of the latest bond issue.

He added” the issue of going long was important because it registered confidence, it reduced our interest charges for what we have currently and then we have a call option on it which will enable us to call as we strengthen the market because we feel pretty confident that the exchange rate will continue to go down with the policies we have and inflation will come down which will affect interest rates and so we put that clause in there to make sure that we take advantage of the changing times so I think the market really hailed it and we are going to Washington a lot more confident than before because the Breton woods institutions know that the market response to what we are doing is good. They themselves acknowledge the momentum and confidence and it’s a great time for the country”.

The latest bond issue comprising four bonds representing the largest amount issued by a sub-Saharan African country in a day was issued for periods ranging between 5 and 15 years consistent with the initial price range of 18.95% – 19.85%.

Substantial investments in the bonds came from respected global financial investors Franklin Templeton led by acclaimed investment guru Michael Hasenstab who has a track record of investing in countries that other investors largely ignore in deals that are seen as unsafe bets that end up paying off.

Having invested in countries like Ukraine, Mexico, and Argentina previously in economically turbulent times. Templeton has held Ghana’s debt for over ten years and already has about 2 billion dollars in domestic and sovereign bonds.

Mr. Ofori-Atta does not stand alone in his belief that the 2.25 billion dollar bond is remarkable for the fortunes of the economy.

Vice President Mahamudu Bawumia said at a town hall meeting to commemorate the 100 days in office that the bond issuance was the deal of the year.

On his expectations of the IMF Spring meeting days after the IMF team ended Article IV meeting in Accra, Mr. Ofori-Atta remained hopeful that the country was on course towards a successful termination of the IMF programme in April 2018 as originally scheduled.

He affirmed the IMFs confidence in the new team at the hem of affairs in Ghana.

 

By: Duke Mensah Opoku/citibusinessnews.com

Related Posts

Local Economy

Support Ghana’s efforts to restore debt sustainability – IMF to bilateral creditors

bycitibusinessnews

The International Monetary Fund (IMF) has called on all bilateral creditors to support Ghana's efforts to restore debt sustainability, as...

Read more

Talks with China over $1.7bn debt positive, encouraging – Ofori-Atta

China to seek proper resolution with Ghana over $1.7bn debt

GSE signs MoU with MIIF to increase listing of mining companies

Consider cocoa pricing in your legislation – COCOBOD CEO to EU

Fitch upgrades Ghana’s Long-term local-currency IDR from ‘RD’ to ‘CCC

Producer Price Inflation drops to 50.8% in February 2023

Next Post

S.A:We will do all we can to avoid another downgrade – Gigaba

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.