6 times oversubscribed $3bn Eurobond 'vote of confidence' in Ghana's economy – Government

The Akufo-Addo government has said it considers the successful issuance of the $3 billion Eurobond at record rates as a vote of confidence in Ghana’s economic resurgence.

The cocoa-producing West African country, on Tuesday, 19 March 2019 successfully issued the bond in a single transaction of three tranches.

At the close of the roadshow in London, the appetite for the 2019 sovereign bond had hit $21 billion – seven times the expected amount.

Addressing journalists in Accra on Wednesday, the Minister of Information, Mr Kojo Oppong Nkrumah, said the government’s consideration that success of the issuance is a vote of confidence, is founded on three pillars which include the growing global confidence in Ghana’s economic resilience.

“The global investment community has, by this oversubscription to this magnitude, signalled their faith in Ghana’s new ability to churn out strong returns on investments, and, consequently, service its obligations.

“Additionally, it reflects robust investor confidence in Ghana’s future economic outlook. During the process, bids submitted exceeded US$21 billion – compared to over US$8 billion in bids recorded in 2018. At US$21 billion, this is the highest ever order-book for bonds issued in sub-Saharan Africa” Mr Nkrumah said.

The minister said such high success at a time when Ghana is exiting the IMF’s four-year Extended Credit Facility programme, is evidence that the global investor community is confident that the managers of the Ghanaian economy are on an irreversible track of stability.



“This, we believe, is driven strongly by the Akufo-Addo administration’s success at introducing legislation such as the Fiscal Responsibility Act, the establishment of the Fiscal Council and Financial Stability Council, all designed to anchor the regained status and remove the endemic risks to macro stability”, he added.

Mr Nkrumah said this landmark issuance recognises the credibility of the economic management team, which has led Ghana to the successful completion of the IMF programme that derailed under the erstwhile NDC government.

The minister said it also confirms the confidence of the international investor community in the strength of Ghana’s economic outlook.

The competitively priced 31-year bond has the longest-ever tenor for bonds issued by an African sovereign, exemplifying investors’ confidence in Ghana’s long-term prospects, he said.

Going forward, the government, Mr Nkrumah noted, will commit to continuing to entrench structural irreversibilities to sustain and anchor the macroeconomic gains, including strict enforcement of the Public Financial Management Act, implementation of the Fiscal Responsibility Act and the establishment of the Fiscal Responsibility and Financial Stability Councils to monitor fiscal/debt sustainability and financial stability, respectively.