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Govt Begins Eurobond Roadshow To Raise $2.5 Billion

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Government is to begin engagement with investors today, Thursday May 3 in a roadshow in United Kingdom in a bid to raise about $2.5 billion.

The roadshow will take the Ghanaian team led by Finance Minister Ken Ofori Atta to the United States as well.

The funds raised at the end of the roadshow next week will be used to clear bonds that have matured and also fund some infrastructural projects.

The roadshow is coming on the back of a new research carried out by the South African-based Rand Merchant Bank ranking Ghana and Nigeria as the most attractive Local and Euro Bond Markets on the continent.

Disclosing the findings of the research, Senior Global Market Researcher at the Rand Merchant Bank Celeste Fauconnier urged Ghana to continue with its fiscal consolidation measures in order to sustain investor confidence.

“If they had a portfolio that says you must invest anywhere in the world, Africa would have felt the pinch,” she said, wondering why would one want to be in Africa which is more risky than going into the US and European bonds.

The US and European bond markets, she said, have dedicated African Funds and Ghana and Nigeria are benefiting from it because “they are the most attractive local bond market and Eurobond markets in our portfolio of countries.”

Zambia, she said, used to be the most attractive bond market for investors but “unfortunately Zambia is shooting itself in its foot because, it is signing an IMF agreement.”

The Finance Minister Ken Ofori-Atta, last month observed that prospects for Ghana issuing a possible Japan Samurai bond in the medium term looked good.

Speaking to selected International Journalists in Tokyo at the end of a road show, he explained that this non-deal road show was not tied to the issuance of a Samurai bond immediately.

Source:  Starrfmonline

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