Ghana is planning to issue a Eurobond worth up to US$1 billion in order to refinance its current debt and fund infrastructure projects, according to the country's Vice President.
Kwesi Amissah-Arthur told Reuters that some of the funds raised would be used to restructure high interest rate debt issued by the West African nation.
Amissah-Arthur said, "We are looking at the best conditions including costs and we will do it until we're convinced it is the right time."
The initial market reaction to the Eurobond issue of the country has been favorable. Seth Terkper, the Ghananian Finance Minister said that the government is yet to appoint its advisors to the transaction. Furthermore, the Ghananian parliament still has to approve the proposal for the bond issue once it reconvenes from recess.
According to Terkper, "We hope to put it before the House as soon as they resume."
Previously, Ghana issued a ten year Eurobond worth US$750 million back in 2007. It had an 8.50% coupon and yielded 4.96% at trading according to Tradeweb.
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