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Ghana may return to foreign bond market in 2013 - Finance Minister
 
Posted on: 13-Aug-2013         Source: Reuters
 
 
 
Ghana may return to the foreign bond market in 2013 to raise $200-$250 million to finance operations of its cash-strapped power utilities, Finance Minister Seth Terkper told journalists on Monday.


The cocoa, gold and oil exporter already issued a second $750-million Eurobond in July to refinance debts and also fund capital projects.

"Ghana will remain in the market as part of our strategy to raise funds to support capital projects and one such area is the power sector. We are looking at a smaller amount of $200 to 250 million to support our power utilities," Terkper said.

"We are now repackaging our bond issuance calendar to include the foreign bond, and it is possible we may go back to the market later this year," he added.

Apart from last month's Eurobond, the government plans to issue its first 100 million cedi ($47 million) 7-year domestic bond on August 22. Ghana already issued three 400 million cedi 3-year bonds between January and June this year to roll-over maturing debts.

Terkper said the key objective for the bonds is to reduce the country's debt profile which is around 50 percent of Gross Domestic Product.

"Overall, our focus is to accelerate growth by using the funds to support our infrastructure needs including self-financing projects that will drive us into our prosperity," he said.