Eurobond over-subscription shows confidence

Mr Felix Kwakye-Ofosu, a Deputy Minister for Information and Media Relations, on Friday said the over subscription of Ghana’s floated one billion Eurobond was a demonstration of the Investor community confidence in Ghana.

He said the floatation, which was oversubscribed by 1.2 billion dollars, would help Government to undertake a number of development projects throughout the country.

Mr Kwakye-Ofosu, who stated this during the daily media briefings at the Flagstaff House, Kanda, said the Eurobond would also make available significant resources for counterpart funding for development projects.

Parliament on June 25, 2013, approved a request by the Government to issue its second Eurobond to raise one billion US dollars from the international capital market.

Proceeds from the bond would be used to finance infrastructure projects and restructure maturing debts and interest payments.

The deputy minister said 103 million dollars out of the amount would be used as counterpart funding for all the approved projects throughout the country while 284 million dollars would be used in the financing of approved projects.

Mr Kwakye-Ofosu said 157 roads would be rehabilitated with funding from the facility.

They include Apam-Akam road in the Central Region, Goaso- Kukuom in the Brong Ahafo Region, Fian-Wahabu road in the Upper West Region and the Berekum town roads.

He said 37 health projects would also be financed through the facility while Agricultural Mechanization centres for the 46 newly created districts would also be constructed to serve the aspirations of government in the coming years.

The first bond of $750 million was raised in 2007 with a coupon rate of 8.5 percent and maturity period of 10 years.