• Ghana plans to issue US $ 1 billion in sustainable bonds in July
• The proceeds from the sale will be used to finance the domestic debt and the Free SHS program.
• The government is seeking to use transactional advisers for the issuance
The Minister of State-designate at the Ministry of Finance revealed that the Ghanaian government plans to raise US $ 1 billion through the sale of sustainable bonds in July this year, Bloomberg reports.
According to Charles Adu Boahen, the proceeds from the sale would go to finance domestic debt that will be used for environmental and social projects as well as loans taken to finance the government’s free high school program.
“With this issue, we seek to refinance these debts already raised to undertake projects in the environmental and social sectors. Of all that we will be raising with our mandate in the capital market this year, only $ 1.5 billion is new debt, the rest is for refinancing or buyout, ”Adu Boahen reportedly said.
Adu Boahen added that the government would contract some of the same transactional advisers he used for the sale of his historic zero coupon bond sale for the sustainable bond issue in July this year.
The bond sale, which will take the form of social and green bonds, follows an earlier sale of four zero-coupon debt securities to investors at the International Capital Market Bank in March 2021.
The Eurobond operation, estimated at US $ 3.025 billion, involved 20-year, 12-year and 7-year securities.
As the main managers of the zero coupon bond sale, the government of Ghana hired Bank of America Corp., Citigroup Inc., Standard Chartered Plc, Standard Bank Group Ltd. and Rand Merchant Bank Ltd.