Bank of Ghana receives $3 billion Eurobond in its accounts

According to Accra-based Citi FM, the funds reached the BoG last Tuesday.

The funds received from the Eurobond increases the BoG’s reserves which was over $5 billion as of November 2019.

The Ghanaian government went to the Eurobond market for the eight time in February this year where it raised a total of US$3 billion in different bonds at various maturities.

The longest dated bond was forty-one years together with a seven year and 14-year dated bonds. The arrival of the proceeds of the bond comes at a time the cedi has since the start of the year appreciated by more than four percent against the US dollar.

The three-tranche bond was sold with 7-year, 14-year, and 41-year maturities.

The government accepted US$1.25 billion for the 7-year-bond at a coupon rate of 6.375%.

The government also accepted US$1 billion with a maturity period of 14 years at a rate of 7.75%.

The final of the three bonds issued was a 41-year bond. The government received US$750 million at a rate of 8.75% for the longest dated bond which matures in 2061. This also happens to be the longest dated bond issued by an African country.

The bond’s proceeds give the BoG enough room to meet increased market demand for dollars should the need arise.