Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has cautioned African countries against piling up debts through excessive bonds issue.

According to her, unless Ghana and other African states are borrowing from the international market to finance infrastructure, Eurobonds may not be a good thing.

"I think it (Eurobonds issues)should be done with measure like every thing. No excess, no abuse", she said.

Ghana and other countries  like Ivory Coast, Rwanda, Kenya and Zambia have recently turned to the international capital market to raise billions of dollars for various projects.

Last month, a third Eurobond to raise $1 billion by Ghana was over subscribed.

The $1 billion bond has a 12-year maturity, with a coupon rate of 8.125%. The bond matures in 2026.

According to the Ghana government the $1 billion Eurobond will be used to fund capital expenditure in the 2014 Budget and counterpart funding for pipeline projects and the refinancing of domestic and external debt.

On June 16 2014, Kenya successfully issued two tranches of a maiden Eurobond ($500m, 5.875% due 2019 and $1.5bn, 6.875% due 2024) in order to support infrastructural developments in road, railway and healthcare. 

Speaking at a news conference on the sidelines of the on-going IMF/World Bank Annual meetings in Washingtoin DC,  Madam Lagarde said proper management of funds from bonds must be a crucial consideration among countries pursing that venture.

"We are currently working with the Fiscal Affairs Department [of the IMF] for specific research work to actually focus on how public finance and civil service in each country can actually well serve the discharge of major infrastructure projects and we will make that expertise available to all our members", Madam Lagarde said.

According to her apart from focusing funds from Eurobond on infrastructure, it is important to make sure Ghana and other African countries appreciate the benefits of good public finance management in ensuring efficiency of infrastructure.