Ghana to issue bonds directly on domestic stock exchange
Ghana is planning to start issuing debt directly on its domestic stock exchange without using auctions handled by the central bank.Ghana is planning to start issuing debt directly on its domestic stock exchange without using auctions handled by the central bank.
The West African nation said it would use a book-building approach for three-, five- and seven-year debt - similar to the method it uses for Eurobonds - in a move designed to boost volumes on its exchange.
Michael Cobblah, chairman of the government’s National Bond Market Committee, told Bloomberg the country will hire banks or brokers to arrange sales.
"We’ll not go to the auction,” Mr Cobblah said. “It creates business for the market players. Our market is very shallow and you make very little money, it’ll be a good opportunity for the brokers to get more business."
Ghana raised one billion dollars (€772 million) in September through a Eurobond
with orders of up to $3 billion.
However, rating agency Standard & Poor’s has recently downgraded Ghana’s sovereign rating to a “B-“ with a stable outlook. The country is now one of the worse rated countries in Africa.