Ghana Seeks To Raise $1bn

Ghana, the first sub-Saharan African country outside of South Africa to sell Eurobonds, plans to seek at least $1bn in a second offer this year, according to two people with knowledge of the plans.

ghanaBloomberg News reported that the West African nation is inviting bids for advisers on the transaction, the people said, who asked not to be identified because the information isn’t public yet.

Ghana sold its debut $750m Eurobond in September 2007 at 8.5 per cent. Finance Minister Seth Terkper said on December 15 Ghana was planning to seek the same amount in the second sale to replace existing debt.

“We are getting advice on it,” he said by phone from Washington, declining to give details.

The government plans to use the money for infrastructure projects, Albert Kofi Asamoa-Baah, financial sector adviser at the ministry, said by phone, declining to confirm the amount.

“We expect the pricing on this one to be more competitive than the first,” he said “The one on the market is doing well so we expect the yield on this one to be lower.”

The yields on the debt that matures in October 2017 fell for a third day, declining less than one basis point to 4.71 per cent by 3:39. in the capital, Accra.

Ghana’s $35bn economy is forecast by the Finance Ministry to grow by eight per cent this year, faster than the sub- Saharan African average of 5.6 per cent, according to the International Monetary Fund.

The country, which began producing oil for export in December 2010, has a budget deficit forecast to narrow to nine per cent of gross domestic product this year from 12.1 per cent in 2012, according to the ministry.

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