Ghana Selling Longest-Maturity Debt Yet to Help Deepen Market

ACCRA (Capital Markets in Africa) – Ghana is selling its longest-maturity local-currency bonds yet  as the West African country looks to deepen capital markets and diversify its funding profile.

The government is planning to sell as much as 200 million cedis ($50 million)  in a book-build on November 10, the Finance Ministry said in a statement on its website. Initial price guidance will be released on Nov. 7, it said.

Ghana’s longest-duration domestic existing debt yet are seven-year notes, which pay a coupon of 24.75 percent.  The 10-year notes will help deepen the bonds market and establish a   benchmark for corporate funding. This is very important for the future,  good news for private companies who will want to take long-term loans.