eurobonds Archives - Wontumi Online

02 Mar

Government Unlikely To Issue Eurobonds At Attractive Yields In Short-Term Despite Securing IMF Programme – Fitch Solutions

wontumionlineBusinesseurobonds, February 2023 Africa Monitor Report, Fitch solutions

The government is unlikely to issue Eurobonds at attractive yields in the short term even if it secures an International Monetary Fund support programme this month or in the next couple of months. In its February 2023 Africa Monitor Report, Fitch Solutions, said the rising interest rates which has been hiked to 28% at the beginning of last year make domestic borrowing more expensive. “First, Ghana faces external financing constraints. Indeed, the country has been cut off from the international capital market since late-2021 due to subdued investor confidence. While an expected IMF deal in Quarter 1, 2023 will gradually…

01 Mar

Ghana’s Eurobonds Extend Declines As Restructuring Hits Snag

wontumionlineBusinessdollar bonds, eurobonds, S&P Global Ratings

Ghana’s Eurobonds extended declines on Wednesday, March 1, 2023, after the country missed a self-imposed deadline to restructure its bilateral debt and S&P Global Ratings warned bondholders face larger losses than anticipated. The nation’s 2032 dollar securities dropped 0.5% to 36.8 cents in the dollar by 8:18 a.m. in London, bringing their decline this week to 1.7%. Finance Minister Ken Ofori-Atta wanted to reach a restructuring agreement with bilateral creditors by the end of February 2023 to help qualify for a $3 billion International Monetary Fund programme. o far, Ghana has only partially completed the domestic-debt part of the exchange programme. Meanwhile,…

24 Jan

Ghana’s Eurobonds Decline As Government Offer Better Terms To Local Securities Investors

wontumionlineBusinesseurobonds, Investors

Ghana’s dollar bonds have fluctuated as concerns rise over the government’s offer of better terms to investors in local government securities, which may shift a bigger burden of a planned restructuring onto holders of the external debt. The eurobond maturing January 2026, on which the nation missed a coupon payment last week, was little changed after S&P Global Ratings downgraded the note to default. Securities due 2027 and 2035, on which coupon payments are due next month, fell marginally. Ghana’s three-pronged approach to its debt restructuring, which includes a swap for local securities, a suspension of payments on eurobonds, and…

25 Oct

Ghana Biggest Loser On African Continent For Failing To Issue Eurobonds: Year-To-Date Index Down 34.6% – Report

wontumionlineBusinesseurobonds, Ghana, September 2022 Africa Markets Revealed, Standard Chartered Bank

Ghana has become the biggest loser on the African continent as a result of the country’s inability to issue Eurobonds. The lack of access to the international capital market is as a result of global economic challenges and internal issues. According to the September 2022 Africa Markets Revealed Report by Standard Chartered Bank, the country’s Year-To-Date Index (listed bonds) is down by 34.6%. It is followed by Morocco (-20.8%) and Rwanda (-20.2 %), while the biggest gainer is the Republic of Congo, whose Year-To-Date index is up 9%. The report also said while oil and gas prices are starting to…

22 Sep

Ghana Faces Possible Debt Default – Senior Director At Fitch

wontumionlineBusinessdebt, debt default, eurobonds, fitch, mahin dissanayake

A Senior Director at ratings agency, Fitch, Mahin Dissanayake, has warned Ghana of a possible sovereign debt default, saying, any kind of debt restructuring could threaten the local banking sector. According to him, “default is a real possibility”. Speaking at a press conference, Mr. Dissanayake said “Ghanaian banks hold large volumes of government securities, so debt distress is going to put a lot of stress on the banks” he said. He explained that “the operating environment is looking very fragile.” According to him, reports that Ghana is planning to restructure that local currency debt as part of an IMF deal…