The Finance Ministry has announced that Ghana has returned to the International Debt Capital Markets as the first Sub-Saharan African Sovereign to issue in USD even in the face of the covid-19 outbreak.
A statement issued by the Ministry said the country has since the onset of the Covid-19 pandemic, achieved a record size in excess of US$3 billion and enhancing its market access through the innovative use of a 4-year Zero-Coupon Tranche.
The statement continued: ”The country’s consistent ability to raise multi-billion- dollar financing and this pioneering use of a 4-Year Zero tranche is a testament to its hard-won credibility with investors, strong growth prospects and disciplined fiscal consolidation efforts in 2020.
Ghana is the first Emerging Market Sovereign to add a zero-coupon bullet tranche to its bond financing portfolio. This is significant as it enables the Government to create fiscal space to build the economy back better.
Commenting on the bond, Ken Ofori-Atta, whose re-nomination as Finance Minister, after President Akufo-Addo’s re-election last December, was also approved by Parliament on Monday, said, “This historic bond issuance is a strong signal that investors have confidence in our plan for debt sustainability, economic recovery and growth and that Ghana remains a Pillar of Stability”.
This Eurobond transaction was concluded on Monday-March 29TH 2021, after a series of fixed-income virtual meetings held locally across three (3) days with Investors from the United States, United Kingdom, Europe, Middle East and Asia.
The transaction comprised US$525 million 4-Year Zero Coupon, US$1 billion 7-year Weighted Average Life (WAL), US$1 billion 12-year WAL and US$500 million 20-year WAL. The traditional Eurobonds priced at 7.75%, 8.625% and 8.875%, respectively.”
Read the full statement below