Ghana raises €102 million on its bond market
The government wants to improve its long-term debt management strategy.Ghana's latest bond issue allowed the government to raise 441 million cedis (€102.2 million) on the regional market.
According to Reuters, the bond, which was open to offshore investors, attracted bids of more than 726 million cedis - about three times the amount initially sought.
The government's objective is to improve its long-term debt management strategy, but also to finance its projects.
In January, the country issued a 500 million cedis bond and in October 2015, a $1 billion Eurobond (€929 million).
This led Moody's to drop the sovereign rating of Ghana from "B2" to "B3", with a negative outlook.
The US agency justified this decision by citing the country's growing debt burden, saying: "the first driver of the downgrade is Ghana's deteriorating fiscal strength as reflected in the significant increase in the government debt ratio".
Interest rates in Ghana are among the highest in the region and its total public debt is expected to reach about 70 per cent of GDP by the end of the year, compared with only 54.8 per cent in 2013, according to government forecasts.