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Government is expected to begin Eurobond roadshow in January 2020 to raise up to $3 billion.
This was after it secured the required approval as captured in the 2020 budget.
JoyBusiness understands that Finance Minister Ken Ofori-Atta is expected or could use the transaction advisers and lead arrangers that worked on the country’s Eurobond earlier this year.
In the first quarter of 2019, the government worked with Bank of America Merrill Lynch, JPMorgan Chase & Co., Morgan Stanley, Standard Bank Group Ltd. and Standard Chartered Plc to arrange the deal.
JoyBusiness also understands that the Finance Minister, Ken Ofori-Atta is expected to lead the roadshow, together with the Governor of the Bank of Ghana, Dr Ernest Addison.
They would be joined by officials of the Finance Ministry and the Bank of Ghana as well as the local banks that are acting as advisors for the offer.
The roadshow is expected to take the team to London, Germany and the USA.
According to the 2020 Budget, the Finance Minister, Ken Ofori-Atta is hoping to use the funds raised to finance some infrastructure projects and help manage its rising debt stock.
Immediate benefits of the Eurobond sale
For some analysts, a successful Eurobond would make available some significant funds for the government to carry out the planned infrastructure projects for this year and also help finance the budget deficit for 2020.
The funds coming in on time would also help increase the Bank of Ghana’s reserves, which could indirectly help with the stability of the Ghana cedi. This is because of how it could help deal with sentiment issues which analysts say had also contributed to the current pressure on the local currency.
Concerns about the Eurobond
For those that are following these Eurobond auctions, their concerns have also been the cost or the expected price the government is likely to pay on offer.
Some analysts are also worried about the timing of the offer, this is because the government is going ahead with an offer at a time that the IMF Board has again raised concerns about governments rising debts, and it even being an election year and how the uncertainties could increase the price of this offer.
But sources close to the government say this is one of the reasons why they are trying to quickly do this Eurobond auction before the second quarter of 2020.
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