Ghana could attract a high coupon rate on its 3 billion dollars Eurobond yet to be issued later this month, that is a verdict from economist, Professor Godfred Bokpin.
Professor Bokpin is of the view that recent activities in the banking sector, coupled with other factors could lead to the coupon rate going up.
A government delegation comprising the Finance Ministry and the Central Bank today begun a Eurobond road show to raise three billion dollars to cater for infrastructure development and retire some maturing debt.
According to officials from the Ministry of Finance, government will use 2 billion of the expected Eurobond fund to support government infrastructure budget in the 2019 expenditure pattern of the country.
The remaining one billion is expected to be used to clear maturing debts owed by government.
In an interview with Citi Business News Professor Bokpin stated that investors will demand more returns.
“We will get it at a slightly higher rate, he said, adding that “ we will be very lucky to get it perhaps the rate at which we got it a couple of years ago but it is possible”.
Prof. Bokpin stated that the success of the bond will depend largely on the road show.
“If investors perceive the rate to be very high, then they will seek greater protection from the Eurobond issue by holding up for higher rate” he said.
Meanwhile Finance Minister Ken Ofori-Atta is also hopeful the issue of the Eurobond and the Cocoa syndicated loan will help stabilize the cedi from further depreciating.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana