Ghana is set to make its first return to the local debt market since the 2022 default, with plans to issue a seven-year bond next week.
Bloomberg reports that the sale will kick off on March 30 and wrap up on April 1, as part of efforts to raise funds for the national budget.
Finance Minister Cassiel Ato Forson is leading the move, with officials hopeful that improving economic conditions will help draw investor interest.
Ghana is counting on improved economic indicators, including inflation falling to 3.3 per cent and a 14-percentage-point cut in the policy rate to 14 per cent, to support its bond sale.
The Mahama administration believes stronger reserves and a stable cedi will attract investors.
However, Citi News reports that some analysts say lower market rates may limit foreign interest, although Standard Chartered’s Samir Gadio notes Ghana could still appeal to investors seeking diversification.
The country’s yield curve will be rebuilt, investor confidence will be restored, and a domestic finance program will be reestablished, according to the Finance Ministry.
After the procedure starts, the amount to be raised from the bond sale will be decided. This year, the government hopes to raise roughly 20.2 billion cedis from longer-term securities with a duration of seven to ten years.
After suspending debt payments in December 2022 to secure a $3 billion IMF bailout, Ghana faced limited market access, but those restrictions have now expired, allowing it to borrow again.
