Ghana allows locals to buy $1b Eurobond

Ghanaian firms can buy some of the $1 billion Eurobond issued by the Ghana government this week.

According to government, the bond will be listed on the Ghana Stock Exchange, making it the first Eurobond to be listed on a local stock market in sub-Sahara Africa except South Africa.

“This is also the first time Ghanaian companies have had the opportunity of buying government Eurobonds,” the Finance Ministry said on its website July 26, 2013 after the bond was launched to foreign investors.

The local issue will be facilitated by the EDC Stock Brokers and the Strategic African Securities.

The bond which has a maturity period of ten years with a coupon rate of 7.875%, which would be paid semi-annually, was oversubscribed by 100%, the Ministry said.

“The over subscription is an indication of the level of confidence the international financial community has in the Ghanaian economy,” it added.

This is the second time Ghana is raising bonds on the international market. The first was in 2007 when the country raised an amount of $750million at a yield of 8.5%.

By Ekow Quandzie