Ghana to issue 500 mln-cedi ($131 mln) 3-yr domestic bond on Thursday - CNBC Africa

Ghana to issue 500 mln-cedi ($131 mln) 3-yr domestic bond on Thursday

Western Africa

by Reuters 0

The leading West African commodities exporter is under a three-year aid programme with the IMF to fix its economy. Photo: Pixabay.

Ghana will issue a 3-year bond to raise 500 million cedis ($131 million) on Thursday to restructure debt and fund government projects, the central bank said on Tuesday.

The leading West African commodities exporter is under a three-year aid programme with the International Monetary Fund to fix its economy, dogged by budget deficits, inflation and a widening public debt.

Proceeds from the bond, which is open to offshore investors, will be used to settle maturing papers, the bank said in a statement.

A 3-year paper issued in October had a 24.5 percent yield, up from 23.47 percent paid on a similar paper previously.

Interest rates in Ghana are among the highest in the region, reflecting the fiscal challenges facing the economy.

Its total public debt is around 70 percent of GDP, while consumer inflation stood at 17.6 percent in November, up from 17.4 percent the month before.

The yield on Ghana's weekly benchmark 91-day treasury bill stood at 22.7939 percent last Thursday.

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