Bouncing Back

Ghana confounds sceptics by raising $3bn in eurobond sale

By David Whitehouse

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Posted on April 6, 2021 07:39

Ghana’s President Nana Akufo-Addo has limited financial room for manoeuvre. REUTERS/Denis Balibouse

Ghana proved it can still access international debt markets by raising $3bn in late March.

The government aims to borrow a total $5bn from markets this year, but the fact that the government’s interest costs are close to 50% of its revenue has led to analyst scepticism it can reach the target.

Yet, in a global context of low interest rates and ample liquidity, the March eurobond sale – the issuing of bonds in a foreign currency – was subscribed twice over. Among the bonds sold were a four-year zero-coupon bond, which raised $525m and showed that some investors are even willing to lend to Ghana without interest.

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