Ghana may auction Eurobonds with or without final IMF review

Kekeli Kuatsenu / News Editor
2 Min Read
Ken Ofori Atta, Finance Minister

Ghanaian Finance Minister Ken Ofori-Atta said the country could proceed with a sale of Eurobonds even before the International Monetary Fund (IMF) completes a final review of the nation’s extended credit-facility program.

The finance ministry will next week name transaction advisers for a planned issuance of as much as $3 billion, after which the lenders will test investors’ appetite for a sale, Ofori-Atta said Friday in an interview in the capital, Accra.

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“After the market sounding, we can go with or without the outcome of the IMF review,” he said. “Our fundamentals are good enough.”

West Africa’s second-largest economy is planning to auction debt to finance its budget and pay off more expensive securities. Last year, it delayed an issuance of Eurobonds until after the IMF concluded a review of the almost $1-billion program that the parties agreed to in April 2015.

While a completed review by the Washington-based lender helps investors with assurances on prudent economic policies, waiting may cause Ghana to miss a favorable window to issue debt at a time when U.S. yields are near one-year lows. The IMF program is due to end April 4.

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Ghana’s Eurobonds have lost 1.1 percent since the start of the month, the biggest decline in emerging markets after Ukraine, according to Bloomberg indexes. The currency has lost more than 3 percent since the central bank unexpectedly cut interest rates by 100 basis points on Jan. 25.

Source: Bloomberg


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