GHANA : THE ISSUING OF AN « UNPRECEDENTED » EUROBOND
The international debt markets continue to be favourable for Eurobond issuance. For this Q2-2021, it is Ghana's turn to raise significant funds of $ 3.0 Bn. This 9th Eurobond for this country is “unique”. Structured in 4 tranches, the 1st one is amounting $ 525 Mn, is denominated at zero coupon over 4 years. While the 2nd, 3rd and 4th tranches, with longermaturities, are denominated at interest rates ranging from 7.75% to 8.875%.
Successful through a Demand equivalent to 2x the Offer, this Eurobond issue from Ghana is the first from an African country denominated, although partially, at zero coupon. Still, general economic conditions call for greater caution, including moving away from a rapid dissipation of the Covid-19 pandemic combined with more volatile market conditions.
However, persistent liquidity in the debt market and the interesting yield levels have supported investment in debt securities in Africa.
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