Ghana to Test Asian Investor Demand for Eurobond Sale

Updated on
  • Finance minister heads to Singapore, Hong Kong for debt issue
  • Country will appoint bookrunners after lawmakers vote on bonds

Ghanaian Finance Minister Ken Ofori-Atta traveled to Asia Thursday to gauge investor interest for the nation’s planned sale of $1 billion of Eurobonds, according to two people familiar with the matter.

The trip to Hong Kong and Singapore isn’t an official roadshow because Ghana hasn’t yet appointed deal advisers for the sale, said the people, who asked not to be identified because they’re not allowed to speak publicly about the matter. The bookrunners will be appointed as soon as lawmakers have voted to approve the debt issuance, said the people.

Officials from the local unit of Standard Chartered Plc, Fidelity Bank Ghana and Ghana Commercial Bank Ltd. will accompany Ofori-Atta on the trip, said the people.

Ofori-Atta didn’t answer calls seeking comment. Jim Baiden, the managing director of Fidelity Bank, couldn’t immediately comment when contacted by phone. A spokeswoman for Standard Chartered Bank Ghana Ltd. didn’t respond to a request for comment while a spokesman for GCB wasn’t available to take calls.

Ghana plans to issue the Eurobonds by April to help finance the forecast budget deficit of 4.5 percent for 2018. The nation will join other sub-Saharan African issuers such as Nigeria and Kenya that are rushing to sell debt before the U.S. Federal Reserve’s policy-tightening path pushes yields higher.

The yield on Ghana’s $1 billion of bonds due in August 2023 rose 8 basis points to 6.13 percent by the close in London Thursday, extending this year’s increase to 31 basis points.

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