Minister attributes Eurobond over subscription to investor confidence

Minister attributes Eurobond over subscription to investor confidence

Seth Terkper

Minister of Finance Seth Terpker is attributing the Eurobond over subscription to investor confidence in the economy, despite recent challenges.

The country’s second Eurobond had 2.2 billion dollars bids from investors, though it sought to raise 1 billion dollars.

Government is going to use proceeds from the bond to clear maturing debts and finance some infrastructure projects.

Speaking to Joy Business in New York, Mr. Terkper said the over subscription is a manifestation of the strong demand for things associated with the country.

Mr Terkper also rejected criticisms the bond cannot be described as a success because of the interest the country is paying investors.

The country would be paying investors an interest rate of 8 percent slightly higher than 6.5 percent Nigeria secured from a similar exercise.

Ghana’s last bond in 2007 had a yield of 8.5 percent. The 750 million dollars should hit government’s accounts by August 7.

It is expected to mature by 2023.

Meanwhile, government would in the coming years be issuing more international bonds to finance its budget and infrastructure projects, Finance Minister Seth Terpker announced following yesterdays’ Eurobond which was oversubscribed.

Comments