Ghana to issue $1 billion Eurobond

Sep 08, 2014

Ghana is reportedly about to issue its third Eurobond worth $1 billion (€772 million) in a bid to refinance maturing debts and other interest payments.

Ghana is reportedly about to issue its third Eurobond worth $1 billion (€772 million) in a bid to refinance maturing debts and other interest payments.

It has opened talks with the International Monetary Fund for financial assistance and analysts say this might be quickly followed by plans to issue dollar-denominated debt, the Financial Times reports.

Seth Terkper, Ghana's finance minister, said the prospects for a successful bond sale were good. "We are optimistic," he explained. "The gas processing plant is coming on stream. The fundamentals are improving."

However, Ghana has been struggling with economic problems and analysts remain cautious about the Eurobond outcome.

The government of Ghana borrowed about 6.3 billion cedis (€1.3 billion) from both domestic and foreign lenders within the first three months of this year, pushing the country's total debt to 58.4 billion cedis, according to official figures published by Modern Ghana.

The Bank of Ghana has reported that the country's debt is more than half of its gross domestic product.ADNFCR-2976-ID-801747080-ADNFCR