Ghana needs $1.2bn to finance infrastructural gap

azGhana requires 1.2 billion dollars annually to bridge its financing gap.

According to Finance Minister, Seth Tekper, a well developed local bond market will therefore play a critical role in government’s ability to mobilize the necessary funds to support capital expenditures.

Speaking at the listing of the 750 million dollars Eurobond on the Ghana Stock Exchange, Mr. Tekper said “the need to develop the capital market in Ghana cannot be overemphasized more especially the wide infrastructural gaps which constraints our developments efforts as a country can only be closed when we tap into long term financing options such as the capital markets, both domestic and foreign.”

The listing which makes Ghana the second after South Africa to list a sovereign bond on its market opened with a yield of 8.135 percent, higher than the coupon rate of 7.875 percent.

Chairman of the National Bond Committee, Mike Cobblah said the historical listing of the instrument will attract multinational companies to list on the Accra Bourse.

Managing Director of the Ghana Stock Exchange, Kofi Yamoah also expressed happiness about government’s commitment to deepen the bond market.

An investment banker with Chapel Hill Denham, Nii Natei Nartey also told XYZ BUSINESS that the listing saying it will allow local investors to participate in the debt instrument.

16.5 million dollars of the 750 million dollar Eurobond is held by local investors.

source: Ghanaweb.com

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