Ghana Eurobond Latest News and Economic Impact

Ghana's Eurobond issuance has been a significant development in the country's economic landscape. The country has successfully issued several Eurobonds in recent years, with the most recent one being in 2020.

In 2020, Ghana issued a $3 billion Eurobond, which was oversubscribed, indicating strong investor interest. The bond was priced at a yield of 7.5%, which is relatively high compared to previous issuances.

This high yield is due to the country's high borrowing costs and concerns over its debt sustainability. Ghana's debt-to-GDP ratio has been increasing steadily, reaching 68% in 2020.

The Eurobond issuance has provided much-needed financing for Ghana's budget and development projects.

Ghana has suspended a planned $500 million Eurobond issue due to higher yields demanded by investors, which it couldn't afford. This decision is likely due to the country's junk-rated credit and struggles with high levels of debt and slumping commodity prices.

Moody's has identified large gross borrowing requirements and rollover risk as one of Ghana's challenges. This is why the country is not an investor favourite, and investors are demanding higher yields.

Ghana's 2023 Eurobond has risen to its highest in more than a week, gaining a cent to trade at 88.500 cents in the dollar. This is a significant increase, but it's still a far cry from the yields investors are demanding.

The finance ministry has said it will continue to monitor markets in the context of a potential new issue. However, this may not happen until the second half of next year, due to upcoming elections and the timing of the 2017 budget.

Ghana's debt restructuring deal implies huge losses to investors, including Nigerian banks with exposure to Ghana's government Eurobonds. The deal will provide debt relief of around $4.4 billion over Ghana's three-year IMF programme, including unpaid interest on outstanding bonds.

Ghana has successfully issued four Eurobonds since 2007, with the most recent one being in 2021. Ghana's Eurobond program has been a game-changer for the country's economy.

The first Eurobond issued in 2007 was a $750 million 10-year bond with a 6.25% coupon rate. This marked a significant milestone in Ghana's history, as it was the country's first-ever Eurobond issuance.

Ghana's Eurobonds have been used to finance various development projects, including infrastructure development and budget support. The funds have also been used to refinance existing debt and provide liquidity to the economy.

The 2015 Eurobond issuance was particularly notable, as it was oversubscribed, attracting over $3.5 billion in bids. This was a testament to Ghana's growing reputation as a reliable borrower in the international market.

Ghana's Eurobonds have been rated as investment-grade by major rating agencies, including Moody's and Standard & Poor's. This has helped to reduce the country's borrowing costs and attract more investors to its Eurobond program.