Government has  delayed plans to issued a $1 billion Eurobond. 

The road show was led by the Finance Minister, Seth Terkper, officials from the Ministry of Finance, the Bank of Ghana (BoG) and advisors to meet with institutional investors in the United Kingdom and the United States.

From August, 1-3, their mission was to raise funds primarily to refinance the balance of the 2017 Sovereign Bonds and other outstanding debts.

According to a statement issued by the Ministry, "the delegation had constructive engagements with investors and received positive feedback from them on the ongoing fiscal consolidation process and Ghana’s turnaround story".

It adds that "Government will continue to build on this dialog with international investors, while monitoring the markets and the IMF Board process with respect to the Third Review of the Program and will issue new notes at the optimal time and the right conditions."

It, however, says government has decided to proceed with a with a capped cash tender offer, up to $100mn of the Ghana 2017 Bonds issued in 2007, in line with the country’s buy-back programme.

The Sinking Fund will be used to purchase these securities as indicated in the 2016 Review of Budget presented to Parliament in July 2016.

But reports monitored on some international wires, like Bloomberg, Reuters and engagements with some international  investors for instance say, the Eurobond has been postponed, because some investors were asking for high interest and uncertainties surrounding the December elections.

This means if government had gone ahead with the bond issue, it could have paid a higher cost.

But a source close to government is insisting that transaction was delayed rather than an outright postponement, adding that it will go back to the market as early as next week if conditions improve.

It is however not clear for now the possible impact of this delay on the country's public debt, and the Ghana cedi.

Source: myjoyonline