Ghana May See Debt Costs Fall After Escaping Credit Downgrade
- Fitch affirmed credit rating while cautioning on spending
- Partial World Bank guarantee may boost Eurobond sale
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Ghana’s borrowing costs may fall in the third Eurobond sale in as many years after the West African nation escaped a credit downgrade deeper into junk and the World Bank agreed to guarantee part of the debt.
The country is embarking on a series of international investor meetings this week to market the sale of $1.5 billion of securities. A World Bank guarantee of $400 million of the debt means investors will probably demand a yield below current market rates, according to Standard Life Investments Ltd. Yields on Ghana’s $1 billion of Eurobonds due May 2023 have climbed 98 basis points this year to 10.14 percent, compared with 7.47 percent for similar-maturity debt of neighboring Nigeria.