Eurobond vote of confidence in Ghana's economic revival – Government

General News on Thursday, March 21, 2019

Source: starrfm.com.gh

2019-03-21

The government said it considered the successful issuance of the eurobond of $ 3 billion at record rates as a vote of confidence in Ghana's economic recovery.

Ghana managed to emit $ 3 billion on Tuesday in a single three-tranche deal. At the end of a road show in London, the appetite for the sovereign bond of 2019 has increased, resulting in orders totaling $ 21 billion, about seven times more than expected amount.

Information Minister Kojo Oppong Nkrumah told reporters in Accra that the vote of confidence was based on three pillars, including growing global confidence in the resilience of the Ghanaian economy.

"The global investor community has, by this over-subscription, expressed confidence in Ghana's new ability to generate strong returns on its investments and therefore to honor its obligations. In addition, it reflects investor confidence in Ghana's future economic prospects. In the process, bids exceeded $ 21 billion, compared to over $ 8 billion in 2018. At $ 21 billion, this is the highest order book ever for bonds issued in Africa. sub-Saharan, "he said.

The minister said Ghana's success in leaving the IMF's FEC program is proof that the global investment community is convinced that Ghana's economic leaders are on a path of irreversible stability.

"We believe that this is strongly motivated by the success of the Akufo-Addo administration to introduce legislation such as the law on fiscal responsibility, the creation of the budget council and the council for financial stability, all intended to anchor found status and eliminate endemic risks to macro stability "added.

Nkrumah said the historic program recognized the credibility of the economic management team, which allowed Ghana to carry out the IMF's FEC program, which failed under the NDC government.

It also confirms the confidence of the international investment community in the strength of Ghana's economic prospects. The competitively priced 31-year bond has the longest bond grade issued by an African sovereign, illustrating investor confidence in Ghana's long-term prospects.

He added that, in the future, the government is committed to continuing to consolidate structural irreversibilities in order to maintain and anchor macroeconomic gains, including the strict enforcement of the law. on the management of public finances, the implementation of the law on financial responsibility and the creation of financial responsibility and financial stability councils. monitor fiscal sustainability / debt and financial stability, respectively.