Ghana plans to sell its second Eurobond with yield priced above Nigeria’s latest dollar- bond issuance. The decision was taken after investor meetings in Europe and the U.S. this week.
The planned bond sale in the world’s second-biggest cocoa producer follows Rwanda and Nigeria as African nations tap appetite for assets from the world’s fastest growing region after developing Asia. Ghana is rated five steps below investment grade at B by Standard & Poor’s, compared with BB-for Nigeria, which is three steps away.
The yield for the 10-year, dollar-denominated notes will be around 8.125 percent, which compares with 6.63 percent yielded in Nigeria’s sale of 10-year bonds on July 2.
Ghana is planning $1 billion of Eurobonds after stops in London, Frankfurt and Los Angeles,
Nigeria comfortably raised $1 billion in its return to the Eurobond market recently, taking advantage of a short period of relative calm in otherwise turbulent markets to issue both a long and shorter-dated bond.