Ghana puts $1bln Eurobond on hold

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Accra - Ghana has put on hold plans to issue a 10-year Eurobond worth up to $1 billion because market conditions are not conducive, a deputy finance minister told Reuters on Wednesday.

But the government has not ruled out issuing a Eurobond this year and is targeting a yield of 8 percent or less, Cassiel Ato Forson said.

“Market conditions today are not good enough for us to issue the bond, because if we are to go in now, we'll get a very expensive spread,” Forson said.

Ghana's parliament approved proposals in December for a 2014 Eurobond, the West African country's third, and said the government could issue up to $1.5 billion to finance capital projects and refinance debt.

“You can't say that because it is not good today, it will not be good tomorrow. So we have to keep monitoring, and I am optimistic that things will change for the better,” Forson added, referring to conditions for a Eurobond issue.

Ghana, which exports cocoa, gold and oil, sold a $750 million 10-year Eurobond last July, paying a yield of about 8 percent. It also bought back about $250 million of its 2007 debut dollar bond. - Reuters


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