Ghana adjudged most impressive bond issuer at Global Capital Bond Awards 2020

Ghana has been awarded as the Most Impressive African Issuer at the Global Capital Bond Awards 2020 after its  successful issuance of the US$3 billion Eurobond at record rates in the first quarter of this year.

Ghana beat Morocco and First African Corp in the category.

Ghana on Tuesday, March 17, 2020, successfully issued US$3 billion in a single transaction of three tranches.

At the close of a road show in London, the appetite for the 2019 sovereign bond had swelled resulting in orders totaling US$21 billion, about seven times more than the amount expected.

The competitively priced 31-year bond has the longest-ever tenor for bonds issued by an African sovereign, exemplifying investors’ confidence in Ghana’s long-term prospects.

A Deputy Finance Minister, Charles Adu Boahen, also placed first runner up in the Most Impressive African Funding Official category won by Abdelhakim Jouahri from Morocco.

US$3 billion Eurobond hits Bank of Ghana’s accounts

In February 2020, the US$3 billion Eurobond issued by government hit the accounts of the Bank of Ghana. The proceeds from the bond provide an improved cover for the Bank of Ghana’s foreign reserves which as at November 2019, was in excess of US$5 billion.

The government in February this year made its eighth appearance on the Eurobond market where it raised a total of US$3 billion in different bonds at various maturities. The longest dated bond was forty-one years together with a seven year and 14-year dated bonds.

Eurobond issuance

The three-tranche bond was sold with 7-year, 14-year, and 41-year maturities. The government accepted US$1.25 billion for the 7-year-bond at a coupon rate of 6.375 percent. This compares favourably to an exact tenor bond government issued in 2019 with a coupon rate of 7.875 percent.

Also, the government was successful in securing US$1 billion with a maturity period of 14 years at a rate of 7.75 percent. This rate also trumps the 8.125 percent the government accepted for a 12-year bond issued as part of the 2019 Eurobond.

The government accepted to borrow US$750 million at a rate of 8.75 percent for the longest dated bond which matures in 2061.

About the Awards

The Global Capital Bond Awards is usually held in May every year in London following a market poll that takes place in the first quarter.

This year however, the winners of the awards were announced virtually due to the COVID-19 pandemic.

The awards is organized to highlight achievement in all the main segments of the international bond markets through a poll of market participants.

The awards thus perform a valuable function, enabling the market to reflect on what worked and
what did not in the past year, celebrating the most impressive performers.

The basis of the poll is that issuers vote for the best investment banks, while banks vote for issuers. Other market participants such as investors, law firms and rating agencies can also vote for and receive awards.

The awards cover supranational, sovereign and agency; financial institution; investment grade
corporate and emerging market bonds.

The principles of the poll are that people cannot not vote for themselves or their own institutions (except in the Most Valuable Player Awards).

People vote on firms that they interact with, not their own competitors (except in the Most Valuable Player Awards and the Emerging Market Bank Awards, where banks are invited to vote for each other).

Click here to see the full list of award winners.