Ghana will list the second Eurobond it secured this week on the country’s local bourse next month, says the chairman of the governing council of the Ghana Stock Exchange (GSE), Dr Sam Mensah.

Speaking  in New York after Ghanaian finance officials concluded the Eurobond sale,  Dr Mensah said the decision will give local investors an opportunity to actively trade in the bond as well as helping to boost the development of the GSE.

Last week, the country sold a $1 billion Eurobond with an 8 percent coupon rate, one of the highest rates in comparison to other African countries.

The bond received offers of $2.2 billion but the West African country accepted $750 million and agreed to use an additional $250 million to pay off debts on its 2007 bond which matures in 2017.

Ghana, which began oil production in 2010, is thus listing the $750million portion on the GSE. which is considered an innovation in the West African sub-region.

According to lead managers of the bond, this would also be the second time a sovereign is being traded on a local bourse in the whole Africa, after a similar move by South Africa.
“The fact that it is listed on the Ghana Stock Exchange is symbolic…It is a vote of confidence in the Ghana Stock Exchange and reflects government’s policy to create a dynamic bond market”, said the Chairman.

He explained that Ghanaians who have bought into the Bond would be able to trade in it locally while making gains from a bond that is international and “very liquid”.

The exchange’s chairman said the Bond will also be traded on the Irish Stock Exchange because of its shorter turn -around time, compared to the London Stock Exchange. Ghana’s first bond issue in 2007 got listed on the London Stock Exchange.

“A lot of emerging markets are now listing on the Irish Stock exchange and that is an internationally recognised stock exchange”, he said.