Eurobond to fund 157 road projects

One hundred and fifty seven road projects are to be funded from the $1 billion raised from the international capital market in New York on Thursday.

Additionally, the government will use part of the money to build infrastructure in all the new 46 districts.

Briefing journalists on the Eurobond at the Flagstaff House in Accra yesterday, a Deputy Minister of Information and Media Relations, Mr Felix Ofosu Kwakye, said $284 million from the money would be used to fund road projects and other projects captured in the 2013 budget.

He mentioned the Apam-Akam road in the Central Region, the Fian-Wahabu road in the Upper West Region, the Goaso-Kukuom road and the Berekum town roads in the Brong Ahafo Region as some of the projects that would be funded from the money.

The deputy minister said general infrastructure, including clinics, schools and offices, would be executed in all the new 46 districts.

He said the development of infrastructure would give the new districts a facelift.

Ghana's second bid to raise $1 billion from the international capital market has been over-subscribed by $1.2 billion.

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

The current bond of $1 billion has a maturity period of 10 years, with a coupon rate of 7.875 per cent which will be paid semi-annually.

Mr Ofosu Kwakye said $250 million would be used as part payment for the $750 million bond raised in 2007, while $103 million would be used as counterpart funding for government projects.

He said the over-subscription of the Eurobond demonstrated the level of confidence that the investment community had in Ghana.

That, he said, showed that government’s efforts ''are yielding positive results''.

By Musah Yahaya Jafaru, Flagstaff House
Daily Graphic/graphic.com.gh/Ghana