Govt resumes engagement to raise USD1.5bn Eurobond funds

Reports reaching myjoyonline.com from London indicates that government has resumed engagements with investors over moves to raise some1.5 billion dollars from investors.

Government last week cancelled the 1.5 billion dollars five-year domestic-market bond-issue this month due to what the ministry of financed described only as “recent market developments."

But a report by the Reuters News Agency said Ghana has begun marketing, at a yield of 11% area, a US dollar benchmark-sized October 2030 bond.

Order books are now open on the bond, which will have a guarantee from World Bank agency, IDA, for up to 40% of the final size. It is expected to price later on Wednesday, Reuters reported.

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 bonds are B1 by Moody's and BB- by Fitch. Ghana's sovereign ratings are B3 by Moody's and B- by Standard & Poor's and B by Fitch.

Barclays, Deutsche Bank and Standard Chartered are the lead managers.