Government has begun processes to raise an amount of US$5 billion to “support growth-oriented expenditures” in the 2021 budget for this year.
This comes after an earlier consideration to launch a 2021 International Capital Market (ICM) funding programme for the medium term in order to raise this amount of money.
The ICM Programme instruments consist of Eurobonds, Diaspora Bonds, Sustainable Bonds, and Syndicated/Bridge Loans, according to the Finance Ministry.
A statement from the Ministry of Finance said this money will also be used “to conduct liability management of both Eurobonds and Domestic Bonds”.
Ahead of the 2020 budget, the government secured a US$3 billion Eurobond in three instalments with interest rates in the international debt capital markets to support the execution of the budget.
The three-tranche bond was sold with 7-year, 14-year, and 41-year maturities.
This transaction, under the International Capital Markets Funding Programme, was made after a three-day roadshow in a series of fixed-income investor meetings in New York, Boston and in London.
But this year, the government wants an additional two billion dollars for the budget, and is already “in the process of mandating Bank of America, Citi Bank, Rand Merchant Bank, Standard Chartered Bank and Standard Bank as Lead Managers under the Programme”.
Read the full statement below:
GHANA COMMENCES PROCESSES TO MANDATE LEAD MANAGERS FOR THE 2021 INTERNATIONAL CAPITAL MARKET FUNDING PROGRAMME
The Government of Ghana has commenced the processes for the 2021 International Capital Market (ICM) Funding Programme.
2. The Programme is for up to US$5.0 billion and will be used to support growth-oriented expenditures in the 2021 Budget and to conduct liability management of both Eurobonds and Domestic Bonds. The Programme instruments consist of Eurobonds, Diaspora Bonds, Sustainable Bonds, and Syndicated/Bridge Loans.
3. The Government is in the process of mandating Bank of America, Citi Bank, Rand Merchant Bank, Standard Chartered Bank and Standard Bank as Lead Managers under the Programme.
4. One of the key mandates for the Banks is to advise the Government on various alternative funding structures and options especially for the Eurobond, that would best fit Ghana’s funding requirements and provide fiscal capacity to further support economic revitalization and recovery at this time. END
ISSUED BY THE PUBLIC RELATIONS UNIT
MINISTRY OF FINANCE
