Ghana/Bloomberg

Economy

Ghana starts marketing its eurobond

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Ghana officials will organise meetings in Boston, New York and London.

Tuesday 12, March 2019

(Bloomberg) --Ghana will meet investors later this week to gauge appetite for its proposed sale of as much as $3 billion in Eurobonds.

If the feedback is favourable it may lead to an immediate issuance, but the ministry will return at a later date if price demands are too high, the people said.

The West African’s second-biggest economy needs $2 billion in foreign-currency debt to help finance its 2019 budget and will take on an additional $1 billion if it’s able to secure loans or securities at lower rates than it’s paying for existing liabilities.

Bloomberg said that the country is going to the market at a time when the cedi is trading at a record low and is this year’s worst performer among 140 currencies.

The Finance Ministry presented a proposal for a syndicated facility to lawmakers last week. The short-term loan will be repaid as soon as the bond sale has been finalised.

Ghana is exiting a bailout programme under the International Monetary Fund, which was entered in 2015 when chronic budget overruns and the currency crisis caused inflation and its debt.

 

TAGS : Eurobonds, IMF, Cedi

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