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Ghana's second Eurobond oversubscribed by 100 percent
From: Ghana | Myjoyonline.com          Published On: July 25, 2013, 19:00 GMT
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Ghana's second Eurobond oversubscribed by 100 percent

The country's quest to raise 1 billion dollars from the international investors has been oversubscribed by 100 percent.

This was after the team from Ghana led by the Finance Minister, Seth Terkper, engaged institutional investors, and fund managers from San Francisco, Los Angeles and London and Frankfurt, New York and Boston.

The 10 year bond had 2.2 billion worth of bids from investors.

Government is planning to raise the 1 billion dollars to clear maturing debts and undertake some infrastructure projects outlined in the 2013 budget.

The country would be paying investors a yield of 8 percent slightly higher than 6.5 percent Nigeria secured from the similar exercise.

Ghana's last bond in 2007 to raise 750 million dollars had a yield of 8.5 percent. Government however just took 1 billion dollars and returned the rest to the investors.

Only 750 million dollars is expected to hit government’s accounts in the next few days, because 250 million dollars would be used to settle the country’s first Eurobond that is maturing.

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