Ghana cannot borrow long term funds which are more than 25 years. This is because of the country’s middle income status since 2009. Ghana’s economic growth of about 8.7 percent in 2008 culminated in the country’s middle income status.

Prior to that, the country was borrowing long term funds of up to 40 years from the World Bank and other institutions. Speaking to Accra based Joy FM Finance Minister, Seth Tekper, said the country will no longer borrow short term funds for capital projects of five years or more. He reiterated that government will be returning to the international bond market to raise long term funds to finance capital projects.

Meanwhile, 16.5 million dollars of the 750 million dollar Eurobond listed on the Ghana Stock Exchange is held by local investors. Mr. Tekper said “the need to develop the capital market in Ghana cannot be overemphasized.

More especially, the wide infrastructural gaps which constraints our developments efforts as a country can only be closed when we tap into long-term financing options such as the capital markets, both domestic and foreign.”

The listing of the Eurobond makes Ghana the second after South Africa to list a sovereign bond on its market.

It opened with a yield of 8.135 percent, higher than the coupon rate of 7.875 percent.