Gov't plans to issue another Eurobond next year
 
Posted on: 2013-Sep-20        
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Government will turn to the international capital market again next year to raise $ 1 billion after a similar move in July that yielded $750,000 to the economy.

A Deputy Finance Minister, Cassiel Ato Forson, disclosed this to Reuters on the sidelines of the Ghana Investment Forum in London.

The country's recent bond had a launch yield of 8% and it is currently trading around 8.3%, but Mr Forson is certain the country can get "a better yield" in next year's planned issue.

African and other frontier borrowers have been active in the international bond markets this year, taking advantage of a wide-reaching investor hunt for returns.

The threat of a reduction in US monetary stimulus stopped the flood of issuance temporarily, but borrowers such as Ghana and Nigeria have returned to the markets in recent weeks, even though yields have risen.

Ghana also recently launched its first seven-year domestic bond, and Forson said there are plans to extend the domestic yield curve beyond the current 10 years. "We want to do 15 and 20 years," he said.

The International Monetary Fund (IMF) on Tuesday September 17 forecast a GDP growth of 7% for Ghana this year, saying the country's current account deficit was a key risk.

But Mr Forson said Ghana could meet the government's 7.9% growth target for the year, despite a fall in commodity prices

"It's very achievable - our economy is diversified, most of our growth is driven by the service sector", he stressed.