Templeton’s Hasenstab buys Ghana’s cedi bonds

Franklin Templeton’s high-profile bond fund manager Michael Hasenstab has taken a “substantial” position in Ghana’s cedi-denominated government bonds via this week’s jumbo debt auction, a source with knowledge of the matter told Reuters on Tuesday.

The investment by Hasenstab, whose flagship $41 billion Templeton Global Bond fund seeks to pick up out-of-favour credits and made successful contrarian punts on Ireland and Hungary in recent years, is a boon for Ghana as the new government tries to stabilise the economy and review terms of an International Monetary Fund loan.

Ghana’s Monday sale of $2.2 billion worth of bonds was the single-biggest daily transaction in sub-Saharan Africa. It included a debut 15-year bond that raised 3.42 billion cedis ($790 million) at a 19.75 percent yield.

The Finance Ministry statement had reported “a very substantial investment in the 15-year bond by a very well respected global financial investor”.

The ministry could not immediately be reached for comment. But a senior government official, speaking on condition of anonymity, said Franklin Templeton had participated in the sale. (RTRS)