The Ghanaian government will soon carry out a new operation on the international capital market, the Finance Ministry reported on a March 9 note.

For this new fundraising, the country is seeking $ 5 billion to finance the 2021 budget, whose deficit is expected this year at 8.3% of GDP. Before the actual operation, the government will start a roadshow next week to attract investors.

According to information relayed by Bloomberg, this will be done virtually due to the pandemic context. In recent years, Ghana has resorted, multiple times, to the international debt market to finance its development programs. While these operations raised concerns about increasing public debt, investors have always shown a particular appetite for Ghanaian bonds. In 2020, the country issued $3 billion worth of Eurobonds, which were oversubscribed nearly five times, to $14 billion.

The new deal will be led by Bank of America, Citigroup Inc, Rand Merchant Bank Ltd, Standard Chartered Plc, and Standard Bank Group. Accra-based CalBank Plc, Fidelity Bank Ltd, IC Securities Ltd, Databank Group, and Temple Investments Ltd will be present as co-arrangers, a source close to the matter said.

"One of the key mandates for the Banks is to advise the Government on various alternative funding structures and options especially for the Eurobond, that would best fit Ghana’s funding requirements and provide the fiscal capacity to further support economic revitalization and recovery at this time,” the Finance Ministry says.

Moutiou Adjibi Nourou