Ghana raises $1 billion on international markets

Sep 16, 2014

Ghana raised one billion dollars (€772 million) on Thursday, September 11th through a Eurobond oversubscribed with orders of up to $3 billion.

Ghana raised one billion dollars (€772 million) on Thursday, September 11th through a Eurobond
oversubscribed
with orders of up to $3 billion.

The titles were sold at a coupon rate of 8.125 per cent, which
was
lower than analysts had expected,
said Ghana's Minister of Finance, Seth Terkper.

"Investors saw fundamental long-term value in the Ghanaian economy (...) With the coming on board of the IMF, we hope to come out of our short-term challenges pretty soon," he said in a statement picked up by Reuters.

The country is experiencing economic difficulties and has started talks with the International Monetary Fund for financial assistance.

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.

The bond should help the country to repay part of its loans and finance major projects needed for the diversification of its economy.ADNFCR-2976-ID-801748631-ADNFCR