The subscription period ends Thursday, October 13, 2016, but the first ever USD-denominated domestic bond issued by government and targeted at investors resident in Ghana and Ghanaians abroad, has been well received, with bids rushing in, bookrunners have told the B&FT. “We have people calling everyday about how to get their bids in; it has … Read more
The sale of the first dollar-denominated bond for local investors begun on October 3 Government is looking at raising up to $100 million from its historic domestic dollar bond. The sale of the first dollar-denominated bond for local investors begun on October 3 and it’s expected to close on October 13, 2016. Sources say government … Read more
Finance Minister, Seth Terkper, has stated that the decision to raise capital through the issuance of international bonds, otherwise known as Eurobond, has become a mainstay in Ghana’s borrowing mix. According to him, Eurobonds provide a cheap source of funds to support the country’s recurrent and capital expenditure. The remarks, which point to government’s plans … Read more
President John Mahama has stated that the recent upgrade from negative to stable by International rating firm, Moody’s is an indication that his government is “doing something right.” Addressing journalists at the Kotoka International Airport upon his return from France Wednesday evening, President Mahama said “In my absence we were pleased to hear that Moody’s … Read more
Government’s desire to borrow more funds continues to grow as the Ministry of Finance targets Ghanaians in the diaspora to raise bonds from them. In recent times, government’s decision to borrow from the international market has been heavily criticized as piling up the debt stock of the country, affecting interest rates. But speaking to Citi … Read more
Why Ghana gov’t needs to rethink too many Eurobond issues Introduction There are several advantages that Eurobond brings to the issuing country. The main advantage is to increase the liquidity and protect the market from large shocks and erratic volatility in the market. Most countries also issue Eurobond to reduce the dependency on international aid, … Read more
Moody’s Investors Service (“Moody’s”) has affirmed the Government of Ghana’s issuer and senior unsecured rating at B3 and changed the outlook to stable from negative. The key drivers of Friday September 23 rating action are: (1) Significant fiscal deficit reduction and institutional reform implementation over the past year under the umbrella of the 3-year IMF … Read more
Finance Minister Seth Terkper is optimistic government’s decision to issue its first local dollar denominated bond in the country will yield good results. According to him, there are enough US dollars in the country, to help government meet its target of raising over 50 million dollars locally. Speaking to Citi Business News after a local … Read more
The Bank of Japan said Wednesday that it’s introducing a new long-term interest rate target of around zero. The bank has already gone to extreme lengths in its attempts to stimulate the country’s stagnating economy in recent years, gobbling huge amounts of Japanese government bonds and taking a key interest rate into negative territory. But … Read more
South Africa does it; and Nigeria does it too, but the idea of local government authorities issuing bonds to fund infrastructure development has been snubbed in Ghana, and investment banker, Kojo Addae-Mensah, believes when CEOs of local government authorities are elected, they will be forced to look at that opening. According to the limitations in … Read more
Information gathered by Citi Business News indicates that government has commenced meetings with local investors to raise its first dollar denominated bond locally. The Finance Minister, Seth Terkper met the investors in Accra last Friday to convince them invest in government’s upcoming $100 million bond this month. The bond, if successful will be used to … Read more
Business Finder’s comparison of Ghana’s debut on the international capital market in 2007 when it raised US$750 million at a cost of 8.50 per cent with the recent Eurobond has revealed a struggling economy. The paper’s analysis showed that while the first bond was issued for a maturity term of 10 years at a cost … Read more
The world’s biggest investment banks saw combined revenues sink by 15 per cent in the first half of this year, the most since the aftermath of the financial crisis, underlining the urgency of taking radical measures to boost returns to shareholders. The second quarter saw more activity than the first, where there were simultaneous falls … Read more
The Minister of Finance, Mr Seth Terkper, has expressed satisfaction at the pricing of Ghana’s fifth Eurobond at 9.25 per cent in London on Thursday to raise US$750 million from international investors with appetite for emerging economies’ sovereign debt instruments. Mr Terkper said both the issue and the processes that led to its success were … Read more
A Senior lecturer at the University of Ghana Business School, Dr. Lord Mensah has argued that managers of the economy should have rejected the 9.25% rate offered by investors on Ghana’s fifth Eurobond. The bond which was issued last Thursday (September 8, 2016), has been met with heavy criticisms from economists including Dr. Mahamoud Bawumia, … Read more
Finance Minister Seth Terkper, has justified the launch of Ghana’s fifth Eurobond at a high yield of 9.25 percent with a short maturity date. Related Stories Ghana issues fifth Eurobond at 9.25% Ghana puts on hold 2016 Eurobond issue Ghana yesterday (September 8, 2016), issued its fifth Eurobond of 750 million dollars at a yield … Read more
Ghana issued a $750 million Eurobond on Thursday at a more favourable yield of 9.25 percent compared to its last sale, officials said, bringing in badly needed cash to balance the government’s budget before elections in December. Finance Minister Seth Terkper told Reuters that Thursday’s sale was oversubscribed with orders exceeding $4 billion, reflecting investor … Read more
The Republic of Ghana has launched a $750m bond due 2022 at a yield of 9.25 percent, according to persons close to the deal. That compares with guidance of 9.5 percent area (plus or minus 12.5bp) and an initial high 9 percent marketing level. It is the second time the sovereign will attempt to sell … Read more
Ghana’s finance minister hopes to tap international capital markets for the fourth time in as many years, but dismissed concerns that government spending and borrowing ahead of elections increased the risk of the nation’s debt becoming unsustainable. Seth Terkper said the Treasury would like to issue a new bond by the end of the year, … Read more
Government plans to borrow an amount of GHC25.2 billion (GHC25,270 million) for the remaining five months of 2016. The amount, which would be borrowed between August and December 2016, will be used to rollover a forecast of maturities to meet government’s financing requirements. The monthly breakdown are August – GHC6 billion (GHC6,010 million); September – … Read more