Ghana considering floating rare $50bn Century Bond – Finance

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Ghana may soon join similar Argentina, Austria and Mexico to issue rare 100-year bonds to finance national projects.

Ghanaian President Addo Dankwa Akufo-Addo announced this at a ceremony in Beijing to sign about eight cooperation agreements between Ghana and China.

"The Ministry of Finance and the economists of Ghana are looking at floating bonds of $ 50 billion. This will provide us with the resources to finance our infrastructure and industrial development. We hope that at some stage China will be interested and take part in it as China's contribution to the development of Ghana, he told Chinese President Xi Jinping on Saturday.

Discussions on overdue debts are fraught with uncertainty due to fluctuations in interest rates, which may reduce returns for investors; but some analysts say that demand for these types of bonds is growing.

Many of these long-term bonds contain an option that allows the issuer to partially or fully repay the debt before the scheduled maturity date.

When Ghana comes out of the IMF program by the end of this year, President Akufo-Addo stressed that the country has decided never to return to this arrangement.

"To do this, we are serious about how we can provide sources of long-term financing that will enable us to deal with our infrastructure development, and also realize Ghana's vision for help."

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