Ghana Eyes $5 Billion With Virtual Bond Roadshow Next Week

Ghana will begin a roadshow next week to raise $5 billion from the international capital markets, as it seeks to close its 2021 budget financing gap.

The nation wants to start marketing the debt to investors after Friday’s budget presentation, a Ministry of Finance official said by phone on Tuesday. The meetings would be held virtually due to coronavirus restrictions, said the official, who declined to be named because they are not authorized to speak publicly on the matter.

This would be the first time Ghana will hold virtual meetings with investors prior to an international debt sale. The sale will help finance its budget gap, which is expected to narrow to 8.3% of gross domestic product this year. That would be down from a projected 11.4% shortfall in 2020, the finance ministry said in October.

Separately, the finance ministry said in a statement Tuesday that part of the proceeds from this year’s capital market program will be used for liability management of both Eurobonds and domestic bonds. Ghana intends to raise the target amount through Eurobonds, diaspora bonds, sustainable bonds as well as syndicated/bridge loans, the ministry added.

The country mandated Bank of America, Citigroup Inc., Rand Merchant Bank Ltd., Standard Chartered Plc and Standard Bank Group as lead managers for the program. It named Accra-based Cal Bank Plc, Fidelity Bank Ltd., IC Securities Ltd., Databank Group and Temple Investments Ltd. as co-arrangers, the official said.

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