Ghana is planning of selling a second Eurobond in an effort to find ways to finance its numerous developmental projects that will support its growing economy in the Africa sub region.
Accra / NationalTurk – Ghana’s economy is expanding and is considered by many analysts both from the World Bank and the IMF as one of the fastest growing economy in Africa along side Angola.
A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued and can be categorized according to the currency in which it is issued.
It is likely that London will be the place Ghana will trade the bond since it is the centers of the Eurobond market but places like Singapore and Tokyo too is not ruled out as it one of the best in bond trading in Asia.
Ghana’s Deputy Minister of Finance Seth Terkper confirmed this latest development to reporters and admitted the country is exploring ways of expanding it infrastructure base by increasing developmental projects.
“It is under consideration, among other options which is aimed at repaying the existing Eurobond to help us finance our economy’s project, the sale may take place in 2013’’, he said.
Ghana was the first to sell its Eurobonds in sub-Saharan Africa outside of South Africa in 2007 and is likely to replicate what it did in 2007 with a further $750 million of the debt to refinance the earlier notes, which mature in October 2017.
Most of Ghana’s budget’s financing comes from tax collection, loans, grants and bond sales on the domestic market, where yields on the benchmark 91-day notes climbed to record of 23.1 percent on October 12 this year.
Many economists believe that as oil and gas revenues slowly pick up, Ghana’s traditional foreign exchange earners, especially cocoa and gold will still be critical next year in the world market.
Cocoa is expected to show sustained output having reached 1 million tonnes in 2011/12 boosted in part by the favorable price differential with Ivory Coast.
Strong gold production will continue in 2013 despite complaints that Ghana’s small scale mining companies are being undermined by Chinese illegal immigrant companies’ cause a lot of havoc to the environment and the local people.
Issaka Adams/NationalTurk Africa Business News
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