Ghana to issue 400 mln cedi 7-year domestic bond in April - CNBC Africa

Ghana to issue 400 mln cedi 7-year domestic bond in April

Western Africa

by Reuters 0

Ghana's third bond will finance infrastructure projects and will be open to foreign investors. PHOTO: accrareport

This is in a fresh bid to use longer-term maturities to restructure its rising debt, the central bank said on Thursday.

The country's third bond will finance infrastructure projects and will be open to foreign investors. Ghana is seeking aid from the International Monetary Fund as it grapples with fiscal problems including a debt-to-gross domestic product ratio above 60 percent.

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The West African country aims to raise a total of 25.4 billion cedis (7.88 billion dolars) in domestic securities before July, the bank said in its issuance calendar.

Ghana issued its debut seven-year domestic bond in August 2013 and held a similar auction three months later with yield at 18 per cent yield.

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The bank will also issue five-year bonds in March and June to raise 440 million cedis each, and three-year paper worth 630 million cedis each in February and May to roll over maturing debts.

The government did not issue a seven-year bond last year as it wanted to avoid a spike in yields following a slump in the local currency.

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