Ghana Eurobond more than five times oversubscribed

Ghana raised $750 million (Sh75 billion) selling Eurobonds at a yield of 9.25 per cent.

The West African country’s auction was more than five times oversubscribed, a month after it abandoned plans to issue debt due to the price demanded by investors. Yields on the nation’s existing dollar bonds fell to 14-month lows.

The country received orders exceeding $4 billion (Sh400 billion) for the bond that will be repaid in three equal instalments between September 2020 and the same month in 2022, the Ministry of Finance said. The proceeds will be used to refinance existing debt and fund capital investments.

The investor demand indicates a “high appetite for Ghana’s credit,” the ministry said. “The transaction is a vindication of the decision taken in August not to issue immediately.”

— Bloomberg

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