Ghana Names JPMorgan Among Banks to Sell $3 Billion in Bonds

ACCRA (Capital Markets in Africa) – Ghana named five banks including JPMorgan Chase & Co. to market a sale of as much as $3 billion in Eurobonds by the first week of February, according to a person familiar with the matter.

The four other main advisers are Bank of America Merrill Lynch, Morgan Stanley, Standard Chartered Plc and Standard Bank Group Ltd., said the person, who asked not to be identified because they’re not authorized to speak publicly about the matter. The same banks marketed the West African’s 2019 issuance in March when it also sold $3 billion in a three-part deal with average maturities of seven, 12 and 31 years.

Morgan Stanley, Bank of America, Standard Chartered, JPMorgan and Standard Bank declined to comment. Finance Minister Ken Ofori-Atta didn’t answer calls seeking comment.

In November, Ofori-Atta said Ghana wants to finalize its fundraising plans for 2020 as soon as possible so that the government can secure finance for flagship programs ahead of a general election scheduled for December.

The sale will take place after yields on the high-yield debt of emerging-market sovereigns dropped as the U.S. and China moved closer to a trade deal, fueling the appetite for riskier assets. Yields on Ghana’s 2029 Eurobond hit a record low last week.

Ghana’s economy expanded by more than 6% annually since 2017 on the back of additional oil exports. The government will target growth of 6.8% in 2020.

Source: Bloomberg Business News