{"id":600287,"date":"2019-03-19T07:22:53","date_gmt":"2019-03-19T07:22:53","guid":{"rendered":"
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Finance Minister Ken Ofori-Atta on Monday\u00a0closed the investor engagement for the Eurobond sale in London, the capital of the United Kingdom.<\/span><\/span><\/span><\/span><\/p>\n

The Roadshow which began last week took the team to New York and Boston in the USA before ending in\u00a0London. <\/span><\/span><\/span><\/span><\/p>\n

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The exercise offered them an opportunity to answer all the budding questions about the Ghanaian economy and how investments would be protected if they should invest in the Eurobond. <\/span><\/span><\/span><\/span><\/p>\n

Mr. Ofori-Atta got the chance to find out the level of investors\u2019 interest in the Eurobond, and the expected interest prospective investors\u00a0are looking forward to receiving.<\/span><\/span><\/span><\/span><\/p>\n

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Details of the Eurobond<\/b><\/span><\/p>\n

According to the Finance Minister, government is planning to raise some $3 billion from investors. <\/span><\/p>\n

The funds would be used to finance some projects outlined in the budget and pay off some expensive debts that are maturing.\u00a0\u00a0<\/span><\/p>\n

Speaking to JoyBusiness, he said he was optimistic that the offer would be successful because of the work that they have done over the past week.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

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Pricing on Tuesday, March 19<\/b><\/span><\/p>\n

Mr. Ofori-Atta has indicated that his outfit is hoping to begin pricing of the bond on Tuesday.<\/span><\/p>\n

For some, this exercise is very important because it could impact on the country\u2019s total debt stock which has reached \u00a2173 billion ending November 2018. <\/span><\/p>\n

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Finance Minister, Ken Ofori-Atta<\/span><\/b><\/p>\n

Sources say the pricing could also determine the amount of funds that government would raise or even the actual time the funds should be raised. <\/span><\/p>\n

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The Finance Minister earlier told JoyBusiness they are hoping to raise the funds by the middle of April 2019.\u00a0\u00a0<\/span><\/p>\n

This should be after the IMF board meeting on Ghana\u2019s program completion review on March 20.<\/span><\/p>\n

Who are the lead arrangers for the EUROBOND?<\/b><\/span><\/p>\n

JoyBusiness is learning\u00a0Bank of America Merrill Lynch and JP Morgan Chase & Co are acting as lead arrangers for the Eurobond. <\/span><\/p>\n

Sources say Morgan Stanley, Standard Chartered Plc and Standard Bank Group Ltd., Fidelity Bank Ltd., IC Securities and Databank Group are local co-arrangers. <\/span><\/p>\n

It is expected that these financial firms are going to use their presence on the market and connections to get their right level of investor interest in the Eurobond.<\/span><\/p>\n

Impact on the Cedi<\/b><\/span><\/p>\n

Proceeds from the Eurobond should hit Bank of Ghana\u2019s account, \u201call other things being equal\u201d before the end of April 2019.<\/span><\/p>\n

This would increase the Bank of Ghana\u2019s reserve which would go a long way to help stabilize the cedi. <\/span><\/p>\n

This is because it would give an indication that or check those traders who were betting on Bank of Ghana reserves to demand dollars when they don\u2019t actually need them. <\/span><\/p>\n

The local currency has already started appreciating marginally against the dollar over the past three trading days and it was selling at around \u00a25.40.\u00a0<\/span><\/p>\n<\/div>\n