Ghana’s $3 billion Eurobond issuance on the international capital market for this year has been oversubscribed two times.
The oversubscription of the bond valued at $6 billion, marks the successful debut of the Eurobond and makes Ghana the first Sub-Saharan country to issue a Eurobond since the advent of the Covid-19 pandemic.
The successful issuance of the 2021 $3 billion Eurobond is testament of investors renewed confidence in the Ghanaian economy.
The debt issuance comprised of four tranches – $525 million 4-Year Zero Coupon, $1 billion 7-year Weighted Average Life (WAL) priced at 7.75%, $1 billion 12-year WAL at 8.625% and $500 million 20-year WAL with a coupon of 8.875%.
As earlier noted by the Finance Minister, funds raised from the issuance will be used to finance the budget deficit as well as conduct liability management on both earlier issued external and domestic bonds.
Government in the 2021 Budget Statement announced its plans of executing a programme aimed at raising up to $5 billion through issuances of Eurobond, Diaspora bond, Sustainable bond and Syndicated loans.
The $3 billion 2021 Eurobond is therefore one of the four vehicles government intends to use to raise up to $5 billion.
Ghana in 2018, successfully raised $2 Billion from the international capital market, the country in 2019 also successfully raised $3 Billion. It raised a similar amount – $3 billion – in February 2020, a month prior to recording its first case of the Covid-19 pandemic and subsequent increased adverse impact of the pandemic on global economies which restricted borrowings to market access countries (MAC) like Ghana.
