Seth Terkper presses local investors to buy $100m bond

Information gathered by Citi Business News indicates that government has commenced meetings with local investors as it prepares to raise its first dollar denominated bond locally.

The Finance Minister, Seth Terkper met the investors in Accra last Friday (September 16, 2016), to convince them invest in government’s upcoming $100 million bond this month.

The bond, if successful will be used to restructure maturing  debts as  well as  infrastructure development.

Early this month, government announced that it plans raising about GH¢25 billion through bonds and treasury bills for the rest of year.

The announcement was a revised issuance calendar indicating government’s plan of borrow from August to December.

The report showed that about Gh¢24 billion of the funds raised will be used to clear previous bonds issued that are maturing, with the remaining going to support fresh commitments.

As part of the plans, a three-year bond will also be issued in November to raise GH¢700 million while it hopes to issue its first 10-year local bond of GH¢200 million.

Meanwhile latest economic and financial data released by the Bank of Ghana indicates that the country’s total debt stock has reached 109.8 billion cedis at the end of July 2016.

According to the report, although the external component of the debts decreased from 60.7 billion cedis to 60.6 billion cedis between the six month period, the domestic component of the country’s debt increased from 40.4 to 49.2 billion cedis from January to June.

About ghanamma

Leave a Reply