Government has finally been able to raise the contentious Eurobond funds. The deal which was closed earlier today, Reuters report said, saw government raising about 1 billion dollars at an interest rate of 10. 75 percent.
The deal will rather be a 15-year bond, and the payment will staggered over three years. That is 2028, 2029 and 2030.
This is how Reuters news agency reported it:
Ghana has set final guidance on its US dollar October 2030 bond at a yield of 10.75% (plus or minus 12.5bp), according to a lead. The bond will price within that range.
The guidance compares with initial price thoughts of 11% area announced earlier on Wednesday.
Demand for the note, which has a partial guarantee from World Bank agency, IDA, for up to 40% of the final size, is in excess of US$2bn.
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The amortising bond has a 14-year weighted average life with three equal redemption payments in October 2028, October 2029 and October 2030.
The expected ratings of the bond are B1 by Moody’s and BB- by Fitch. Ghana’s sovereign ratings are B3 by Moody’s, B- by Standard & Poor’s and B by Fitch.
Barclays, Deutsche Bank and Standard Chartered are the lead managers. The bond is expected to price later today.
Meanwhile, speaking to Business Trends on Joy FM earlier today, Group Managing Director of Hayfield, Mahama Iddrissu urged to go ahead to raise the funds despite the high interest.
Speaking on the same program, Economist, Dr. Godfred Bokpin said raising the bond might be the right thing to do looking at the current challenge. He however said there will be pressure on government to use the funds prudently.
