Ghana set to issue another Eurobond
Ghana’s Finance Minister, Hon. Seth Terkper has hinted of another Eurobond issue, barely a month after it went to the international market to raise $1.5 billion.
Terkper indicated at the weekend that government was working to issue another Eurobond before the end of 2015.
According to the minister, the regime was constrained to issue another bond after it failed to raise the envisaged $1.5bn. The Parliament of Ghana had given legislative approval for the issue.
But government could only raise $1bn at an interest rate of 10.75 per cent from the international financial market last month. Government plans to use the proceeds from the bond to finance both local and external debts.
According to reviews from experts, “the current maturity profile of the nation’s domestic debts posed a number of challenges that included high risks associated with frequent rollover of short and medium term debts, because of volatile interest rates.
“The maturity profile of public debt indicates 75 per cent of domestic was short term to medium term, with short-term debt constantly 39 per cent of the country’s debt portfolio which stood at GHC 94.5bn by August 2015.
Terkper at a media briefing indicated that government intended to take advantage of a window in the financial market to raise the required funds to manage its overbloated public debts.
Meanwhile international rating agency, Moody, has assigned a provisional B3 for the bond, assigning a high risk status to it.
A car assembly plant in Nigeria.