Foreign investors have shown interest to buy government’s 2.4 billion dollar energy sector bond.
Citi Business News understands this is the response following an international road show by the transaction managers for the energy sector bond.
The Deputy Energy Minister in charge of Finance, Joseph Cudjoe who disclosed this to Citi Business News explained that the move is expected to accrue cash to fix the financial challenges confronting Ghana’s energy sector.
“The advisors of the bond issue; Stanchart as the lead advisor they rather undertook an international roadshow in London and also followed up in South Africa. At the moment, I believe within the next days the local roadshow will also be done so that we have international and local to complement the investor interest in the bond,” the Deputy Minister stated.
The continuous delay in paying off the 2.4 billion dollar (10 million cedis) debt has been cited as the bane of Ghana’s banking sector.
This is because the balance sheets of the commercial banks have been badly affected.
The government contends that the financial challenges confronting the various institutions in the power distribution system.
Debts owed by the VRA to Ghana Gas for instance stands at 500 million dollars.
This has also resulted in Ghana Gas’ inability to repay the CDB loan contracted to construct the Atuabo Gas processing plant.
Recently, the CEO of the Ghana Grid Company (GRIDCo), Ing. William Amuna bemoaned the indebtedness of the ECG to the company in excess of over GH¢ 600 million and how it is affecting the cash flow and operations of the power generator.
Mr. Joseph Cudjoe is however confident that the eventual issuing of the bond should turnaround the fortunes of the finance and energy sectors.
“We are looking at raising 6 to 7 billion cedis at this stage because sometimes when it comes to raising funds, strategically if you go in with the huge amounts, investors can bargain for a higher yield. But if you control it and make it smaller, then many investors that show interest can accept very competitive rates.”