The 10-year bond raised $1.0 billion at 7.627%, while the maiden 30-year bond raised another $1.0 billion at 8.627%.
A statement, issued by the Public Relations Unit of the Ministry of Finance, said the demand for Ghana’s credit peaked in excess of US$8.0 billion, representing an over subscription of three times the targeted amount.
“$750m of the issuance represents new debt, while a portion of the remainder will be used to swap for more expensive existing Eurobonds, as well as other liability management operations,” it said.
It explained that the issuance had some notable characteristics such as being the first time a Sub – Saharan African country with a rating of B Stable having priced a sovereign Bond at that low costs, indicating a strong investor confidence.
“It is also the first time Ghana has extended its international capital market funding to 30 years,” it stated.
“It must be noted that despite the size, $1.25 billion, which would be used for liability management would not add up to the debt stock of the country as it is debt neutral.”
Source: GNARead Full Story