Parliament also approved an option to issue an additional 500 million dollars for purposes of refinancing existing debt.
A Ministry of Finance and Economic Planning statement signed by Cassiel Ato Forson, Deputy Minister, explained that during the presentation of the 2014 Budget, government announced its intention to diversify its sources of funding.
Government also stated its intention to change the maturity profile of the public debt, by financing capital expenditures with long-term debt, as well as re-finance expensive domestic debt with cheaper sources of funds.
The statement said in accordance with the Public Procurement Act, government has selected Barclays Bank, Deutsche Bank, and Standard Chartered Bank, as Lead Managers to undertake the preparatory work for the bond transaction.
Databank, EDC Stockbrokers and Strategic African Securities have also been Co-Managers, whilst Dentons serve as International Counsel and JLF and MB Legal Consultancy as Local Counsel.
The transaction advisors will work closely with a Transaction Committee with representatives from the Ministry of Finance, Bank of Ghana, and the Attorney-General’s Department, in the preparatory work for the execution of the transaction.
Although the transaction team is expected to start work immediately on the preparatory activities, government will continue to monitor the market for a suitable execution window.