GHANA PRICES FOURTH EUROBOND

Ghana has priced and will issue its fourth Eurobond of US$1.0 billion at a coupon rate of 10.75%. The bond was oversubscribed, with orders exceeding US$2 billion compared to a target of US$ 1.0 billion.

This represents an oversubscription of more than 100% indicating the high appetite for Ghana’s credit. This oversubscription occurs within a period of high turbulence in emerging and peripheral markets.

The bond is a soft amortizing one with a tenure of 15 years amortising in years 2028, 2029 and 2030. The principal will be repaid in three instalments of US$333 million in years 2028 and 2029, and US$334 million in 2030. The 15 year tenure means that Ghana has become the first sub-Saharan African country outside South Africa to successfully issue a 15-year bond.

Like the three previous issues, this year’s bond attracted investors from the United Kingdom, Europe, the United States, Middle East and Asia. The Notes will be listed on the Irish and Ghana Stock Exchanges. The bond was issued after an 8-day Roadshow that took the Ghana team led by Hon Seth Terkper, Minister for Finance and Dr. Henry Kofi Wampah, the Governor of the Bank of Ghana to London, Los Angeles, San Francisco, Boston and New York. Hon Terkper, at the end of the Pricing in New York, today, expressed his satisfaction with the bond issue and the processes that led to its success, noting that Ghana has once again issued a landmark bond for the following reasons:

• The curve extension means that Ghana has become the first sub-Saharan 2 African country outside South Africa to issue a 15-year bond
• Many new investors have participated in the transaction enabling Ghana to expand its investor base
• The World Bank partial guarantee of US$400 million has enabled Ghana to borrow on reasonable terms in a rather difficult market

Hon. Terkper explained further that the proceeds would be used for the refinancing of maturing domestic debt. Hon Terkper reiterated that the bond issuance was in line with Ghana’s new debt management strategy guided by the principle of smoothening the maturity profile and minimsing interest burden on the budget.

It would be recalled that Parliament approved an amount of up to US$1.5 billion for refinancing of existing debt (US$ 1.0 billion) and for capital expenditure (US$ 0.5 billion). This issue relates to the refinancing of existing debt.

Signed:

Hon. Seth Terkper

MINISTER FOR FINANCE

Accra- October 7 TH, 2015

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