ACCRA: Ghana plans to issue a three-year domestic dollar bond next week to develop local funding sources to support the economy, deal arrangers told Reuters on Thursday.
The bond, open only to Ghanaians, is the second after a debut issue in October last year, a two-year bond with a six percent yield that raised $94.64 million.
The issue size has not been announced but sources said the government is targeting a range of $50 million-$100 million. Bids will open on Tuesday until final pricing on Thursday.
The bond, which will mature in 2020, will be issued through book-building to be arranged by Barclays Bank, Stanbic Bank and brokerage firm Strategic African Securities. Settlement is slated for Nov. 13.
"It's not really about the size. Rather, the motivation is to continue to develop a local funding market, and the target is those investors and businesses that directly generate dollar revenues," a co-arranger said.
Ghana is emerging from a fiscal crisis that has left it with a large budget deficit and public debt, forcing the government into an aid deal with the International Monetary Fund that has now been extended by a year to April 2019.