Global markets oversubscribe Ghana’s US$3bn Eurobond sale

Finance Minister, Ken Ofori-Atta

Global Capital markets have given a vote of confidence in the Ghanaian economy – over-subscribing its US$3 billion Eurobond sale by five times more than the amount of money the country has asked for.
It was also at comparatively very low rates.

The government had gone to the Markets to raise US$3bn but investors responded with a US$15bn offer for its new coupon rates.

Market watchers were initially worried that Ghana might achieve little success in trading the new bonds at rates cheaper than the 7.88 per cent and 8.13 per cent, for last year’s seven and 12-year bonds.

The West African country, however, surprised everybody by pulling off 6.375% and 7.875% for 7 and 15-year bonds respectively.

Additionally, it sold a 41 year bond at a coupon of 8.875% – the longest dated bond for an African Country.
In 2019 the country sold a 31-year bond at 8.95%.

Finance Minister, Ken Ofori Atta, who led Ghana’s Bond Issuance Team, said the lower rates reflected the country’s reduced risk premium demanded by the capital markets.

He added that the bonds over-subscription demonstrated growing confidence in Ghana’s medium to long term economic growth prospects.

Earlier in the week, Bloomberg had adjudged Ghana’s currency the best performing against the dollar, and its Central Bank also voted the best performing African Central Bank.

Global ratings agency Moodys has also reviewed Ghana’s ratings outlook from stable to positive.

The US$3bn raised would go to support the budget – critical infrastructure development, energy and initiatives to deliver more growth, jobs and income to the people.

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