Finance Minister assures prudent use of Eurobond proceeds

Finance Minister Seth Terkper has given assurance that proceeds from the  Eurobond would be used prudently to ensure Ghanaians benefit from the deal.

Government Thursday successfully raised one billion dollars from investors after a bond issue that was oversubscribed by more than 2.9 billion dollars. 

However, government settled on only a billion dollars of cash from foreign investors in the United States, Britain and other countries..

750 million dollars of the bond, according to government, would be used for capital projects and counterpart funding.

The remaining 250 million dollars would be used as seed capital for the Ghana infrastructure Investment Fund.

Speaking to Joy Business from New York, Mr. Terkper said the Eurobond sale would help to improve infrastructure in the country and stabilise the troubled Ghana cedi.

He said the sale of the bond should not “be seen as just as a paper activity or some foreign activity that has no bearing on us as Ghanaians”.

He gave assurance that proceeds from the bond would be used to finance strategic infrastructure especially in the energy sector.

The Finance Minister said the proceeds, which are coming in hard foreign currencies would also help boost the cedi, although he added quickly that that was not the prime reason for the bond issue.

The one billion dollars from bond sale should hit Bank of Ghana's account by September 18, and would be listed on the Irish and London Stock Exchanges