Minister of Finance, Ken Ofori-Atta

Ghana aims to issue a number of bonds of up to $ 2 billion by November 2021, Bloomberg reported.

According to the news portal, the issuance will be in the form of green and social bonds primarily intended to sell debt securities to development finance such as the country’s Free Senior High School Program.

This means that Ghana would take the first step of the first social bond issue in Africa.

In an interaction with Bloomberg monitored by GhanaWeb, the country’s Finance Minister Ken Ofori-Atta explained how the bond issuance will unfold.

“The bonds are expected to be issued in the fall and the maximum could be US $ 2 billion after Ghana already sold US $ 3.03 billion in March out of the US $ 5 billion for which he has budget approval. Of the total, $ 3.5 billion will be used to refinance the debt already raised. Our new real debt will be US $ 1.5 billion, ”the Minister said.

He assured that the government and transactional advisers will aim to negotiate the best possible terms for the issuance of bonds.

“Durable bonds are not cheap, there is no haircut and however we will seek to negotiate the best terms,” ​​noted Ken Ofori-Atta.

Already, Ghana has announced its intention to borrow up to $ 5 billion in sustainable bonds on the international capital market for fiscal year 2021, the proceeds of which will be used to refinance debt for social projects, educational, health and environmental.

Minister of State at the Ministry of Finance Charles Adu Boahen previously revealed that the government would contract some of the same transactional advisers it used for the sale of its historic zero-coupon bond sale in March 2021.

The bond sale which will take the form of social and green bonds follows an earlier sale of four zero-coupon debt to investors in the international capital market.

The Eurobond transaction, valued at US $ 3.025 billion, included 20-year, 12-year and seven-year securities.

As leaders in the sale of zero coupon bonds, the Government of Ghana has contracted Bank of America Corp., Citigroup Inc., Standard Chartered Plc, Standard Bank Group Ltd. and Rand Merchant Bank Ltd.

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