Audio By Carbonatix
Government has delayed plans to issue a $500 million Eurobond.
Government was hoping to close this deal Thursday but had to postpone although no official reason has been communicated.
The road show was led by the Finance Minister, Seth Terkper, officials from the Ministry of Finance, the Bank of Ghana (BoG) and advisors to meet with institutional investors in the United Kingdom and the United States.
From August, 1-3, their mission was to raise funds primarily to refinance the balance of the 2017 Sovereign Bonds and other outstanding debts.
According to a statement issued by the Ministry, "the delegation had constructive engagements with investors and received positive feedback from them on the ongoing fiscal consolidation process and Ghana’s turnaround story".
It adds that "Government will continue to build on this dialog with international investors, while monitoring the markets and the IMF Board process with respect to the Third Review of the Program and will issue new notes at the optimal time and the right conditions."
It, however, says government has decided to proceed with a with a capped cash tender offer, up to $100mn of the Ghana 2017 Bonds issued in 2007, in line with the country’s buy-back programme.
The Sinking Fund will be used to purchase these securities as indicated in the 2016 Review of Budget presented to Parliament in July 2016.
But reports monitored on some international wires, like Bloomberg, Reuters and engagements with some international investors, for instance, say, the Eurobond has been postponed because some investors were asking for high interest and uncertainties surrounding the December elections.
This means if government had gone ahead with the bond issue, it could have paid a higher cost.
But a source close to government is insisting that transaction was delayed rather than an outright postponement, adding that it will go back to the market as early as next week if conditions improve.
It is however not clear for now the possible impact of this delay on the country's public debt, and the Ghana cedi.
Latest Stories
-
Mahama’s approval ratings dip reflect public mood, not surprising — Bomfeh
9 minutes -
Dr Arthur Kennedy slams NPP over failure to complete Afari Hospital, demands apology
21 minutes -
Kwabena Bomfeh urges gov’t to intensify reshuffles and complete stalled health projects
38 minutes -
Akyem Kotoku seeks stronger Parliament- traditional authority collaboration
39 minutes -
HR practitioners urged to play strategic role at workplaces
42 minutes -
Ghana must prioritise local cashew processing to unlock jobs, boost export earnings – ACPG
48 minutes -
CIHRM urges HR professionals to uphold ethics and accountability as Act 1020 takes full effect
53 minutes -
Ghana pitches upstream oil and gas opportunities to Canadian investors at Global Energy Summit
53 minutes -
Bail or presidential pardon for Sedina would deepen perceptions of unequal justice — Dr Kennedy
1 hour -
Mahama has never considered pardon for convicted officials – Akwatia MP
1 hour -
Health Minister launches Free Primary Healthcare initiative in Volta Region
1 hour -
Sedina should face jail term; extradition unlikely if health is jeopardised — Dr Arthur Kennedy
1 hour -
Minority to verify Sedina’s imprisonment next week – Baffour Awuah
2 hours -
State must prioritise recovery of funds beyond sentencing in Sedina Tamakloe case – Bomfeh
2 hours -
World Cup: Reliance on unproven charges unfair – Foreign Ministry challenges Canada’s decision to deny Thomas Partey entry
3 hours