Road show on govt’s US$1bn Eurobond next week

The consultants and advisors on the government’s US$1bn Eurobond, due to be issued next month, have left the country for the United States of America (USA), where they will stage road shows to arouse investor appetite for the offer.

The officials, from Barclays Debt Capital and the Citi Group, both international finance institutions and joint managers of Ghana’s second Eurobond, and EDC Brokers Limited and Strategic African Securities (SAS), the co-managers, left the country on June 17 for the USA, a source familiar with the transaction told the Daily Graphic.

“The road shows will start next week and last for a week or two. It can even end earlier than that because nobody wants to incur more cost (by prolonging the road show) if the objective can be achieved in a short time,” the source added.

The paper has learnt that the road shows will be held in London, Frankfurt and Los Angeles, as well as done online to prospective buyers in China and other countries.

The road show is in the form of presentations to prospective buyers, fund managers and capital market players on the reasons for the offer, how the proceeds will be applied and why people should patronise it.

It is also expected to mention Ghana’s investor-friendly environment and the current socio-economic stability as reasons why the international investing community should have faith in and patronise the offer.

It is after the road show that the issue date will be announced, possibly in August.

On the recent pockets of fiscal slippages with regard to the rising inflation and the high wage bill and their overall impact on economic performance, the source said going forward, “the presentation will look at how these will be addressed in the long term”.

“Remember it’s a seven-year issue so nobody will be focusing too much on the present circumstances,” the source, who is part of those to undertake the road show, added.  

The country’s maiden Eurobond, which is due to mature in 2017, was oversubscribed partly because of the country’s strong economic outlook at the time.

The same appetite could meet the present given the votes of confidence most international economic institutions have passed on the country.

By Maxwell Adombila Akalaare, Accra
Daily Graphic/graphic.com.gh
Ghana