The Ghanaian government will issue on July 31st a 400 million cedis (€87 million) bond with a maturity of three years.

Jul 25, 2014

The Ghanaian government will issue on July 31st a 400 million cedis (€87 million) bond with a maturity of three years.

The Ghanaian government will issue on July 31st a 400 million cedis (€87 million) bond with a maturity of three years.

The objective is to support the nation's budget, according to a director at the Central Bank of Ghana, quoted by Ecofin news agency.

The operation, which will be open to foreign investors, is the first of two national bond issues planned for the second half of 2014, despite the deterioration of Ghana's sovereign rating from B1 to B2 by Moody's, with a negative outlook.

The US rating agency Standard & Poor's (S&P) also changed the country's outlook from stable to negative, due to an increase in domestic debt.

The latter has also said last month that the financial costs associated with the issuance of eurobonds will now be greater for African countries, citing as an example the budget deficits of Ghana and Zambia.

"The heyday of international bonds issued by new players or from frontier markets, such as those of African countries in the past two years, are part of the past. Periods when attending to oversubscriptions are also no longer valid,"
said Konrad Reuss, Head of Sub-Saharan Africa Department at S & P, quoted by the newspaper Business Daily.ADNFCR-2976-ID-801737622-ADNFCR