Ken Ofori Atta
Government’s road show meant to attract investors for the country’s energy sector bond billed to be used to clear the energy sector debt starts today in London.
Another one is fixed for Accra on 23rd October, 2017.
A statement issued by E.S.L.A. PLC, an independent special purpose company established and sponsored by the Republic of Ghana and acting through the Ministry of Finance, which announced the road show, said it has appointed Standard Chartered Bank, Standard Chartered Bank Ghana Limited and Fidelity Bank Ghana Limited to arrange a series of fixed-income investor meetings in London and Accra, commencing on October 19th 2017.
It also named Temple Investments and GCB Bank as Co-Managers on the mandate.
This time around, government has decided to auction the $2.5 billion bond in tranches, starting with the first tranche of GH¢6 billion cedis, which is equivalent to about $1.3 billion.
Explaining the decision to avoid a wholesale issuance of the estimated GH¢10 billion cedis or $2.5 billion bond to Citi FM, Deputy Energy Minister in-charge of Finance, Joseph Cudjoe, said it was to attract the most competitive price on the market.
“We are looking at raising 6 to 7 billion cedis at this stage because sometimes when it comes to raising funds, strategically if you go in with the huge amounts, investors can bargain for a higher yield. But if you control it and make it smaller, then many investors that show interest can accept very competitive rates.”
E.S.L.A also noted that the road show will be followed by a new 7-year and 10-year benchmark-sized, nominal fixed-rate GHS-denominated bonds, with payments in Ghana cedis, documented under Ghana SEC regulations to be listed and traded on the Ghana Fixed Income Market of the Ghana Stock Exchange, subject to market conditions.
Representatives of E.S.L.A. Plc are Samuel Arkhurst, a Non-Executive Director and Chief Economics Officer and Director of Debt Management Division, Ministry of Finance; and Amanor Dodoo, a Senior Partner with KPMG Ghana, which has been appointed as the administrator of E.S.L.A. Plc.
In the case of the Republic of Ghana, its representatives include Charles Adu Boahen, Deputy Minister for Finance; Joseph Cudjoe, Deputy Minister for Energy; Cynthia Arthur, Head, Financing & Investor Relations, Debt Management Division, Ministry of Finance; Kwame Adu Okyere-Mensuo, Head Energy Risk Management, Debt Management Division, Ministry of Finance and Charles Owusu, Technical Advisor, Energy, Oil & Gas, Ministry of Finance.
Some commercial banks have called on government to speed up the processes to quickly settle the energy sector debt.
By Samuel Boadi