- Bond issued in place of cedi notes to test investor demand
- Domestic notes said to be issued at rate of 5% to 7%
Ghana is meeting investors as the nation prepares to sell bonds for as much as $100 million in its first issuance of foreign-currency debt to domestic buyers, Finance Minister Seth Terkper said.
The bond will be issued in place of cedi notes of the same value as the government tests local demand for foreign-currency investments, Terkper told reporters on Friday in the capital, Accra.
“The main purpose is for the ministry of finance to issue dollar bonds to meet local commitments in the budget,” Terkper said. “Another constituency we want to tap into in the future is diaspora bonds targeted at Ghanaians living abroad.”
The country will offer the bonds at a rate of 5 percent to 7 percent, according to a person familiar with the matter. The term and rate will be decided on next week after financial advisers surveyed investors’ appetite, Terkper said.
Ghana’s preparation to sell the dollar notes domestically comes a week after the country sold $750 million in Eurobonds to international investors. It is issuing debt while awaiting a review from the International Monetary Fund on economic reforms since agreeing to a bailout plan of almost $1 billion in April 2015.