The country’s historic bond issuance deal reached the Bank of Ghana last Tuesday.
Experts say, funds from the bond is a good cover for the country’s foreign reserves which was in excess of US$5 billion in November 2019.
In February 2020, Ghana made its eighth appearance on the Eurobond market and 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.
The US$3 billion Eurobond hits Bank of Ghana’s accounts at a time the cedi is recording more than four percent gains against the US dollar.
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 last of the three bonds issued was a 41-year bond which happens to be the longest dated bond issued by an African country. The government accepted to borrow US$750 million at a rate of 8.75 percent for the longest dated bond which matures in 2061.
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