Skip to content
Subscriber Only

Credit Markets Get Weird in Ghana Zero-Coupon Bond Plan

  • Country plans to refinance more expensive local-bond debt
  • Securities offering no interest would be a first for Africa
Photographer: Cristina Aldehuela/Bloomberg
Updated on

Africa’s first zero-coupon dollar bond is getting closer to reality, testing the appetite of credit investors to forgo income for a new kind of emerging-market risk.

Ghana is selling the four-year debt to international investors as part of a $3.025 billion Eurobond deal that also includes 20-year, 12-year and seven-year securities. Zero-coupon notes, which are usually sold at a deep discount to face value, are more volatile than bonds that pay regular interest.