Ghana’s 2018 Soveriegn bond issuance has raised $2.0 Billion at the lowest rates on the International Capital Markets for an Emerging Markets nation of its kind.

The 10-yearbond raised $1.0Billion at 7.627% while the maiden 30-year bond raised another $1.0Billion at 8.627%.

The last 5-year bond issued by the NDC administration cost Ghana a coupon rate of 9.25%. Investors however say the improved economy reduces the risk associated with Ghana’s debt and thus they can afford to lower coupon rates.

This comes even after Markets were turbulent following rate hikes by Argentina and Turkey in recent weeks as well as rising interest rates in the US causing fears that the issuance could cost Ghana more.

Government officials on the roadshow team say; “This is a reflection of the improving Ghanaian situation for which reason we are benefiting from lower rates despite recent turbulent activities on the emerging Markets front. These cheaper bonds will help us to pay off the expensive ones issued by the previous administration and save mother Ghana money which can be invested in job dense initiatives. Investors have expressed increased confidence in the early turn around signs and have chosen to reward Ghana for it.”

A statement released by the Ministry of Finance said the transaction represents the first time a sub – Saharan country with a rating of B stable has priced a sovereign Bond at such low costs indicating a strong investor confidence. The statement further said it is also the first time Ghana has extended its international capital market funding to 30 years.

Officials were also grateful to the Parliament of Ghana for approving the transaction as well as the Bank of Ghana and The International Joint Lead Managers who assisted in the transaction.