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Ghana’s Sovereign Bond Oversubscribed

Ghana’s bid to raise US$1 billion from the international capital markets has been oversubscribed.

Ghana will issue US$750 million 7.875 per cent. Notes due 2023. Ghana will also invite holders of its existing US$750 million 8.5 per cent. Notes due 2017 to offer to exchange these existing Notes for up to US$250 million of new Notes.

The Notes will be listed on the Ghana Stock Exchange and the Irish Stock Exchange. This is the first time Ghanaian companies have had the opportunity to purchase Republic of Ghana eurobonds. The Notes are being offered into Ghana by Co-Managers EDC Stock Brokers and Strategic African Securities.

A team from Ghana led by the Finance Minister, Seth Terkper, has engaged in meetings and presentations with institutional investors and fund managers in New York, Boston, San Francisco, Los Angeles, London and Frankfurt.

The Government had earlier indicted that the proceeds of the new Notes are to be used for capital expenditures, refinancing outstanding domestic and foreign debt and to extend Ghana's debt maturity profile.

The Republic of Ghana is rated B1 by Moody's, B by Standard & Poor's and B+ by Fitch.

The Lead Managers for this transaction are Barclays and Citigroup and the Co-Managers are EDC Stock Brokers and Strategic African Securities. Ghana's international legal counsel for the deal is Dentons, and local legal counsel is  JLD & MB Legal Consultancy.

This announcement does not constitute an offer to sell, or the solicitation of an offer to subscribe for or acquire Notes in the United States or in any other jurisdiction or in which such offer or solicitation is unlawful or would impose any unfulfilled registration, qualification, publication or approval requirements on the government, and, in particular, are not for release, publication or distribution in the United States, Australia, Canada or Japan or to U.S., Australian, Canadian or Japanese persons.

The  Notes may not be offered or sold in the United States absent an exemption from registration under the US Securities Act of 1933 (the “Securities Act”). The Notes have not been and will not be registered under the Securities Act or any other applicable law of the United States, or under the applicable securities laws of Australia, Canada or Japan. 

There will be no public offer of the  Notes in the United States.  Subject to certain exceptions, the  Notes may not be offered or sold in the United States, Australia, Canada or Japan or to, or for the account or benefit of, any US person, or any national, resident or citizen of Australia, Canada or Japan.


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