in

Ghana raises $3 billion via 4-year zero-coupon bond

Ghana raises $3 billion via 4-year zero-coupon bond

Ghana’s President Nana Akufo-Addo arrives for a meeting at the 33rd Ordinary Session of the Assembly of the Heads of State and Government of the African Union (AU) in Addis Ababa, Ethiopia, February 10, 2020. REUTERS/Tiksa Negeri

ACCRA (Reuters) – Ghana’s finance ministry said on Tuesday it had successfully raised $3 billion on the international debt market using a 4-year zero-coupon bond tranche.

The issuance was two times oversubscribed, the ministry said in a statement.

“This historic bond issuance is a strong signal that investors have confidence in our plan for debt sustainability, economic recovery and growth,” Finance Minister Ken Ofori-Atta was quoted as saying.

The ministry said using $400 million of the money raised to refinance domestic debt would enable the West African country to save around $200 million over the four years.

As a result of its zero coupon, the bond does not make periodic interest payments, but is sold at a discount to its value at maturity.

Reporting by Christian Akorlie; Writing by Bate Felix; Editing by Cooper Inveen and Kevin Liffey

Published at Tue, 30 Mar 2021 19:26:54 +0000

What do you think?

Written by Riel Roussopoulos

Comments

Leave a Reply

Your email address will not be published.

Loading…

0

Ghana raises $3 billion via 4-year zero-coupon bond

Real assets vs. stocks: which is the right investment for you?