Ghana to Probably Sell Eurobond as Early as June, Terkper Saysby
Yield on Ghana's benchmark Eurobond soared to 16% earlier
Parliament approved sale of as much as $1 billion for 2016
Ghana may sell a Eurobond as early as June, Minister of Finance Seth Terkper said.
The government is committed to using the money to refinance other debt, Terkper told reporters in the capital, Accra, on Tuesday. Parliament approved the sale of $1 billion of the foreign debt for this year, of which $750 million will be for the budget and the rest to refinance securities, in December.
“We usually use the June, July window or after summer,” to sell the foreign securities, he said. “So in terms of dates these are the periods we have in mind.”
Ghana had planned to sell Eurobonds by March to help finance the fiscal gap. Investors have sold off the riskiest of assets globally as concern grows about Chinese economic growth and a slump in commodities, including oil. The yield on Ghana’s benchmark Eurobond due in 2023 has risen 300 basis points, or 3 percentage points, this year to 15.21 percent.