0 0

Ghana Raises $2b sovereign bond

business 0 0

Ghana has raised a total of US$ 2.0 billion from its 2018 sovereign bond issuance which was concluded on Thursday May 10, 2018.

The 10-year bond raised $1.0 billion at 7.627%, while the maiden 30-year bond raised another $1.0 billion at 8.627%.

Demand for Ghana’s credit peaked in excess of US$8.0 billion, representing an over subscription of three times the targeted amount.

$750m of the issuance represents new debt, while a portion of the remainder will be used to swap for more expensive existing Eurobonds, as well as other liability management operations.

The issuance has some notable characteristics as it is the first time a sub – Saharan African country with a rating of B Stable has priced a sovereign Bond at this low costs indicating a strong investor confidence.

It is also the first time Ghana has extended its international capital market funding to 30 years.

Despite the size, $1.25 billion which would be used for liability management would not add up to the debt stock of the country as it is debt neutral.

Source : Ghana/AccraFM.com/100.5FM

Related Articles


    No comments to display
1 2

Post a Comment

Your e-mail address will not be published.
Required fields are marked*

  This is an error message

© - 2018 Class Media Group All rights reserved.


Subscribe to our newsletter to received updates on Class FM. By subscribing, you agree to our terms and conditions