Govt On Course To Issue US$1bn Eurobond � Terkper

The government says it is on course to raise US$1 billion through the issuance of Eurobond on the international capital market later this year. A road show to create public awareness and whip up investor interest from the international community on the bond is expected soon, the Minister of Finance and Economic Planning, Mr Seth Terpker, said and added that the government was currently in discussions with consultants and advisors on the prospectus accompanying the bond. He, however, declined to give the exact date the bond would be issued except to say it would be done this year. "We are well on course on the bond; currently, the advisors and the consultants are in discussions with government on the prospectus. Once that is done, we will stage the road show to create the awareness," the minister said at a press briefing in Accra. The briefing, which was done at the Peduase Lodge in Accra, formed part of the daily press briefings aimed at updating the public on issues at the Presidency and those pertaining to the management of the economy. The government earlier this year announced its intentions to go back to the international bond market in search of the US$1 billion, proceeds of which are to be used to, among other things, meet capital expenditures captured in this year�s budget and retire maturing debts, including the partial and gradual redemption of the Ghana 2017 Eurobond. Its issuance, prospectus and the proposed application of the proceeds were approved by Parliament late last month and the issue scheduled for this month. It is, however, not clear if that timeline will be met, especially given that the government, as stated by the Finance Minister, was yet to conclude discussions and consultations on the deal. The timing of the bond issue is crucial because investor appetite for it could slow down should the issuance coincide with a weak economy outlook for the country within the international business community An earlier one in 2007 was oversubscribed, partly as a result of heightened investor confidence in the economy at the time. This year�s bond, which will be the country�s second, has Barclays Debt Capital and the Citi Group (both international finance institutions) as joint managers with EDC Brokers Limited and Strategic African Securities (SAS) as co-managers.