Business News of Monday, 14 May 2018
A Deputy Minister for Finance, Charles Adu Boahene has assured to make public the list of investors who participated in Ghana’s recent $2 billion Eurobond.
Some financial observers have always called on the government to publish the list of investors who buy sovereign debt from Ghana to protect the interest of the state in future.
Ghana raised a total of two billion dollars in two separate bonds last week with maturity periods of 10 and 30 years at an interest rate of 7.62 percent and 8.62 percent respectively.
Speaking on the Citi Breakfast Show, Mr Adu Boahene stated that the government could publish the list if there is a demand for it.
“…We can make that information available it’s not a problem at all,” said.
The Deputy Minister explained that during the bond issuance period, they received had about $8 billion from the over hundred institutions that bid, but they only accepted $2 billion since that was what they had gone to the market for.
“When they were doing the bond issuance process, every time a bid came in, it was shown on a screen regarding a pie chart; what type of investor they were, their location and which bank took the order. I’m sure we met over a hundred institutions on the road. Out of that number, quite a significant number of them put in an offer to purchase. The final list will not include all the hundred [institutions] because only a few of them passed. So I can make a list available,” the Deputy Minister.
Effective marketing reflected by $2 billion Eurobond success
Adu Boahen in the interview also disclosed that Ghana was able to raise $2 billion Eurobond at comparatively lower rates because government marketed the country well to foreign investors.
“We managed to raise money at such lower rate this time around because we actively spent 2017 marketing the country, doing non-deal road shows, talking to investors and really allowing them to see that we are actually running a very legitimate economy.”
He blamed previous struggles on negativity publicity and propaganda.
“We need to stop the politics because all these news items go into the media. We need to have a lot of constructive criticism of each other rather than all these negativity because somebody picks up the news and reads it and doesn’t realise that this is just politics.”