Ghana’s finance ministry raises $3 billion via 4-year zero-coupon bond

Ghana’s finance ministry announced on Tuesday that a $4 billion zero-coupon bond tranche had been successfully placed on the foreign debt market. 

According to the ministry, the issuance was two times oversubscribed.

“This historic bond issuance is a strong signal that investors have confidence in our plan for debt sustainability, economic recovery and growth,” Finance Minister Ken Ofori-Atta was quoted as saying.

According to the ministry, using $400 million of the funds to refinance domestic debt would save the West African nation $200 million over the next four years. 

The bond does not pay periodic interest due to its zero coupon, but it is offered at a discount to its maturity value.

Educator, writer and legal researcher at Alafarika for Studies and Consultancy.

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