$2.25bond transaction was transparent and denominated in Cedis – Ofori-Atta

$2.25bond transaction was transparent and denominated in Cedis – Ofori-Atta

Finance Minister, William Ken Ofori-Atta, Wednesday, appeared before the Parliament of Ghana and told Members that the 15 and 7 year $2.25 billion bond with a coupon rate of 19.75%  issued in April was done in a transparent manner.

The said bond, he added, was denominated and issued in Ghana Cedi, in accordance with the relevant laws of the West African nation.

“Mr. Speaker, like our previous bonds, these bonds were issued in a competitive and transparent bidding process, managed by our Joint Book Runners namely: Barclays, Stanbic and SAS, who were appointed in 2015. As is the normal practice, since the book building process began in 2015, the Joint Book Runners announced the sale of the bonds, as per the 2nd quarter Issuance Calendar. Subsequently, primary dealers who are mostly banks mobilized interested foreign and local investors to participate in the sale,” he noted.

He added: “I want to state categorically that the bond was denominated and issued in Ghana Cedis. It should be understood that it was not a dollar bond. The advantage of opening it up to foreign investors is that they bring in their hard currency to purchase the bond in our local currency. This has the positive impact of helping to strengthen the cedi. The participation of foreign investors who brought considerable foreign exchange through their custodian banks has created the false impression to some that it was a USD bond.”

Mr. Ofori-Atta was summoned to Parliament by the Speaker, Rt. Hon. Prof. Aaron Michael Oquaye, when the Minority Leader, Haruna Iddrisu moved a Half Hour Motion on May 31, 2017, to provide detailed information on the recent $2.25billion bond including the full complement of documentation related to the issuance, participants, the utilization of the proceeds and currency in which the bond was settled.

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