Eurobond still on, Tekper confirms

Tuesday 1st April , 2014 3:54 pm

bondsFinance minister Seth Tekper has dismissed reports that government has suspended plans to issue the one billion dollar Eurobond.

Ghana’s parliament last December approved proposals for a 2014 Eurobond and said the government could issue up to $1.5 billion.

Ghana in all has issued two Eurobonds.

Last year it successfully raised $1 billion from the international market in the second issue which was heavily oversubscribed.

But there are reports that the issuance of this year’s bond would be put on hold due to unfavorable market conditions.

Early on a deputy finance minister Kweku Ricketts-Hagan told Citi Business News the reports were untrue.

‘That is categorically not true, currently as I speak we are preparing the processes to go to the market and I can tell you that the processes are ongoing……We seek the authorization so that we can prepare in all the processes so that whenever we think that things are favorable, we can then go the market’.

Addressing lawmakers this morning finance minister Seth Tekper confirmed that the issue will still come on as planned.

He stated that a road show for the bond will be embarked on this month.

‘We have obtained approval from the Public Procurement Agency to appoint the advisors and we will be embarking on a road show this month.

We are aware that emerging matters remain volatile but Mr. Speaker an explanation that we gave to keep an eye on these developments is not tantamount to withdrawal from the bond issue as has been widely reported in recent days’. He said.

The issue will be used to refinance debt and fund infrastructure projects in the country.

By:  Vivian Kai Mensah/citifmonline.com/Ghana

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