Finance Minister Ken Ofori-Atta on Monday closed the investor engagement for the Eurobond sale in London, the capital of the United Kingdom.

The Roadshow which began last week took the team to New York and Boston in the USA before ending in London.

The exercise offered them an opportunity to answer all the budding questions about the Ghanaian economy and how investments would be protected if they should invest in the Eurobond.

Mr. Ofori-Atta got the chance to find out the level of investors’ interest in the Eurobond, and the expected interest prospective investors are looking forward to receiving.

Details of the Eurobond

According to the Finance Minister, government is planning to raise some $3 billion from investors.

The funds would be used to finance some projects outlined in the budget and pay off some expensive debts that are maturing.  

Speaking to JoyBusiness, he said he was optimistic that the offer would be successful because of the work that they have done over the past week.    

Pricing on Tuesday, March 19

Mr. Ofori-Atta has indicated that his outfit is hoping to begin pricing of the bond on Tuesday.

For some, this exercise is very important because it could impact on the country’s total debt stock which has reached ¢173 billion ending November 2018.

Finance Minister, Ken Ofori-Atta

Sources say the pricing could also determine the amount of funds that government would raise or even the actual time the funds should be raised.

The Finance Minister earlier told JoyBusiness they are hoping to raise the funds by the middle of April 2019.  

This should be after the IMF board meeting on Ghana’s program completion review on March 20.

Who are the lead arrangers for the EUROBOND?

JoyBusiness is learning Bank of America Merrill Lynch and JP Morgan Chase & Co are acting as lead arrangers for the Eurobond.

Sources say Morgan Stanley, Standard Chartered Plc and Standard Bank Group Ltd., Fidelity Bank Ltd., IC Securities and Databank Group are local co-arrangers.

It is expected that these financial firms are going to use their presence on the market and connections to get their right level of investor interest in the Eurobond.

Impact on the Cedi

Proceeds from the Eurobond should hit Bank of Ghana’s account, “all other things being equal” before the end of April 2019.

This would increase the Bank of Ghana’s reserve which would go a long way to help stabilize the cedi.

This is because it would give an indication that or check those traders who were betting on Bank of Ghana reserves to demand dollars when they don’t actually need them.

The local currency has already started appreciating marginally against the dollar over the past three trading days and it was selling at around ¢5.40. 

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