African Countries Scramble for the Eurobond Market


Wednesday, February 12, 2019 11:48 AM / By FDC/ Header Image Credit: ARY  News


On Tuesday, February 4th, the government of Ghana raised $3 billion in a Eurobond auction. The Eurobond sale was aimed at boosting the government's coffers and it definitely raised the interest of various investors as the bonds were oversubscribed five times.


The Ghanaian Cedi is currently the world's best-performing currency against the dollar. In recent years, the country has enjoyed some economic stability after concluding the three-year lending programme with the International Monetary Fund.


Ghana sold sub-Saharan Africa's longest-ever bond. According to Bloomberg, the 6-year bond sold $1.25billion at 6.375% yield, 14-year bond sold$1 billion yielding 8%and the 41-year bond $750 million at 8.875%. The bonds would mature in 2027, 2035 and 2061 respectively. Ghana's government stated that the low rates reflect a reduced risk premium to improve economic conditions in Ghana.


Following Ghana's example, Nigeria is also approaching the international capital market to raise $3.3 billion. This would be used partly to fund the country's 2020 budget.


Proshare Nigeria Pvt. Ltd.

Related News

  1. A Return to the Eurobond Market
  2. Narrower Rate Differential Favouring Eurobonds
  3. A Likely Return To The Eurobond Market By FGN In 2020
  4. A Quiet Trading Session as Global Oil Pressure Weigh on Nigerian Sovereign Eurobonds
  5. What is Driving Early Eurobond Redemption by the Banks?
  6. Nigerian Eurobonds Weaken as Trade war Depresses Oil Prices
  7. CP Market Gains Traction As Investors Rebalance Portfolios
  8. Anchoria Fixed Income Monitor: Undulating Interbank Rate
  9. ACCESS to List Its N15bn 15.50% Fixed Rate Unsecured Climate-Credential Green Bond on LuxSE
  10. Alternative Investment Options Spur Bearish Sentiments as Average Yield Advances to 3.9% WoW
  11. Derivatives Market Will Create Jobs and Attract Additional Capital Inflows - Bola Onadele
  12. Invest in The Nigerian Breweries Plc Series 5 and Series 6 Commercial Paper
  13. Invest in Flour Mills Tranche A and Tranche B Bonds Issuance Programme
  14. Hike in CRR Fuels Bearish Sentiments as Average Yield Inches to 3.7%, NB CP Available

 Proshare Nigeria Pvt. Ltd.

Related News