Ghana rakes GH¢430.4 million from sale of Energy Sector Levy Act (ESLA) bond, here's how

January 15, 2020 2:42 PM

The government of Ghana has obtained GH¢430.4 million from the sale of Energy Sector Levy Act (ESLA) bonds opened to investors on 30 December 2019 and closed on January 13, 2019.

Minister for Energy John Peter Amewu

The 12-Year Senior Fixed-Rate Bond is expected to mature on December 29, 2031, and will have a coupon rate or yield of 20.50%.

According to a circular by the Lead Arranger, Fidelity Bank, the interest payment will be effected semi-annually, beginning July 13, 2020, until maturity.

The reason for the sale of the ESLA bonds

ESLA Plc was seeking to raise GHS260 million additional funds via the 12-year Ghana cedi denominated bond.

The minimum and maximum issue sizes were expected to be GH¢100 million and GH¢1 billion, respectively.

ESLA Plc has, since inception, issued bonds worth GHS6.664 billion. This resulted from issuances in November 2017 (7-year tranche E1 and 10-year tranche E2), January 2018 (tap of 10-year tranche E2-B), August 2018 (tap of 10-year tranche E2-C) and June 2019 (10-year tranche E3), August (tap of 10-year tranche E2-C) and June 2019 (10-year tranche E3).

Significantly, a buy-back and subsequent cancellation of bonds worth GH¢664 million in June 2019 brought the total outstanding bond under the programme to GH¢6 billion.