Gov’t engages investors in a “non-deal roadshow”

April 19, 2017
Source: Norvan Acqauh - Hayford/thebftonline.com/Ghana
Gov’t engages investors in a “non-deal roadshow”

Thebftonline.com has gathered that government has begun engaging investors to showcase the country’s growing economic prospects this week even though it will not likely to launch an Eurobond soon.

The meeting which has the Finance Minister leading the delegation is a “non – deal roadshow.”

Government is yet to receive a parliamentary approval to raise more funds in the form of bonds from the international market to support the country’s growing infrastructural needs and also repay its maturing debts.

A non – deal road show which is a requirement that precedes issuing of a bond is to whet the appetite of prospective investors to want to buy bonds from a country when it is issued.

The government team, thebftonline.com understands, began their meetings today Tuesday in London, which will take the team to Boston, New York among others.

Though it is not clear when the government will be going on the market to raise its next Eurobond or domestic bond sources in the Finance Ministry say, the engagement was at the request of some institutional investors who have interest in bonds issued by Ghana.

The meeting is expected to give a clear understanding to the investors’ reasons behind programmes outlined in the government’s 2017 budget and how they intend to fund it, while offering the investors the opportunity to have one-on-one engagement with the Ghanaian team, especially the new Finance Minister of Ghana Ken Ofori- Atta and Central Bank Governor, Dr. Ernest Addison.

The team is expected to be joined by the Vice President Dr. Mahamadu Bawumia.

The last time Ghana issued Eurobond was last year where we raised some $750 million at a yield of 9.25 percent in an auction that was more than five times oversubscribed.

The yields on the nation’s existing dollar bonds analyst say fell to 14-month lows after Ghana issued its fifth Eurobond.

According to the immediate past Finance Minister Seth Terpker, the country received orders exceeding $4 billion for the bond that will be repaid in three equal installments between September 2020 and the same month in 2022.

The proceeds from the bond was expected to be used to refinance existing debt and fund capital investments.