Ghana is seeking a $750 million loan from StanChart and Standard Bank, here's how it plans to spend it

The government of Ghana has announced that it is in talks with Standard Chartered Plc and Standard Bank Group Ltd. for a bridge loan of $750 million.

Minister of Finance, Ken Ofori Atta

The government says it will repay the facility with the proceeds of an Eurobond sale.

The finance ministry listed the proposal for a syndicated loan in the last Friday’s parliamentary order papers and said it is intended to “fund or refinance development projects and for liability management.

Recently, Nigeria appointed some five banks as lead arrangers for Eurobond sale which included StanChart and Johannesburg-based Standard Bank.

Ghana has, therefore, seized the opportunity to negotiate the $750 million loan from the StanChart and Standard Bank.

The chairman of the finance committee, Mark Assibey-Yeboah told Bloomberg in an interview that the facility would be a short-term loan.

He said, “This is bridge financing against the Eurobond,” adding that, “the bond sale may take two or three months to be finalised.

Ghana needs $2 billion in foreign-currency debt to help finance its budget and will take on an additional $1 billion if it’s able to secure loans or securities at lower rates than it’s paying for existing liabilities.

This loan will hence be used to fund or refinance development projects and for liability management.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

4 side effects of being a virgin for too long, according to research

4 side effects of being a virgin for too long, according to research

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

Zari Hassan lectures Tanzanians over her viral black innerwear video

Zari Hassan lectures Tanzanians over her viral black innerwear video

Where is Mr Tembo? Ex-Tahidi High principal resurfaces [Video]

Where is Mr Tembo? Ex-Tahidi High principal resurfaces [Video]

DP Ruto's firm wins Sh190M Nairobi county gov't tender

DP Ruto's firm wins Sh190M Nairobi county gov't tender

Diana Marua hospitalized, Bahati gives update [Photos]

Diana Marua hospitalized, Bahati gives update [Photos]

Betty Kyallo shares photos of the first Subaru she bought after joining KTN

Betty Kyallo shares photos of the first Subaru she bought after joining KTN

North Korean man who smuggled 'Squid Game' into the country to be sentenced to death

North Korean man who smuggled 'Squid Game' into the country to be sentenced to death

Yvette Obura’s heartwarming message to Diana Marua excites Kenyans

Yvette Obura’s heartwarming message to Diana Marua excites Kenyans