Bank of Ghana finally receives US$3 billion Eurobond cash

The US$3 billion Eurobond cash raised by the Finance Ministry in the last week of March 2021 has hit the account of the Bank of Ghana.

JoyBusiness reports that the BoG received the funds on April 7, but could not establish whether the necessary transaction cost of the lead managers was taken out before the transfer.

The funds are coming after the Ministry of finance, together with the Bank of Ghana officials led a three-day virtual roadshow to engage investors from UK, Europe, Middle East and Asia in the last week of March 2021.

The government of Ghana has made a successful debut into the International Debt Capital Markets securing US$3 billion from an oversubscribed bond book value of $6 billion.

With this, Ghana becomes the first Sub Saharan African Sovereign to issue a Eurobond in USD since the onset of the COVID-19 pandemic.

The proceeds will support the budget deficit by funding growth-oriented expenditures; conduct liability management on both external and domestic bonds.

Government explained in the 2021 budget its intention of raising up to $5 billion through Eurobond, Diaspora bond, Sustainable bond and Syndicated loans.

This 2021 Eurobond is therefore one of the four vehicles government intends to use to raise the amount.