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.