Ghana May Sell $750 Million of Eurobonds to Replace Notes

Ghana, which sold sub-Saharan Africa’s first Eurobonds outside of South Africa in 2007, may issue a further $750 million of the debt to refinance the earlier notes, which mature in October 2017.

“It is under consideration, among other options, to repay the existing Eurobond,” Deputy Finance and Economic Planning Minister Seth Terkper said by phone today from the capital, Accra. The sale may take place in 2013, he said, declining to give details.

Ghana is considering selling a second Eurobond as it looks for ways to finance development plans that will support its growing economy, which is expanding at one of the fastest paces in Africa. Most of the budget’s financing comes from tax collection, loans and grants and bond sales on the domestic market, where yields on the benchmark 91-day notes climbed to record of 23.1 percent on Oct. 12, according to data compiled by Bloomberg.

The yield on Ghana’s 8.5 percent Eurobonds gained less than 1 basis point to 4.97 percent by 7:09 p.m. in Accra. A basis point is equivalent to 0.01 percentage point.

In September, Finance and Economic Planning Minister Kwabena Duffuor said the falling yield on the debut bonds made a second sale attractive.

“It will be around the current market yield, and with that we would be saving on government debt commitments,” he said.

To contact the reporter on this story: Moses Mozart Dzawu in Accra at

To contact the editor responsible for this story: Vernon Wessels at

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