Ghana to sell 7-year bond, first since debt overhaul

Ghana is re-entering the domestic bond market with a 7-year government bond issuance, its first mid- to long-term debt sale since a sweeping sovereign debt restructuring, underscoring a cautious economic recovery and renewed push toward emerging market stability.

The Finance Ministry said the bond will be marketed from March 30, with books closing April 1 and settlement scheduled for April 7, positioning the offer as a key test of investor confidence in Ghana’s post-crisis fiscal outlook.

Foreign investors back in focus

The offering will be open to both domestic and foreign investors, highlighting Ghana’s strategy to attract foreign portfolio investment and revive capital inflows after its 2022 default.

With a minimum bid set at 50,000 Ghanaian cedi ($4,575), the coupon rate will be determined via book-building, a structure aimed at aligning pricing with real-time market demand for African bonds.

The inclusion of non-resident investors signals a broader effort to reposition Ghana within emerging market debt portfolios while deepening liquidity in its domestic capital markets.

Rebuilding yield curve and market confidence

According to the ministry, the bond issuance is designed to support liquidity management, refinance maturing obligations, and rebuild Ghana’s sovereign yield curve, an essential benchmark for pricing risk across the economy.

Proceeds are expected to support liquidity management and refinance maturing obligations, while expanding access for both retail and institutional investors seeking exposure to high-yield African debt.

The move also reflects ongoing reforms to stabilize Ghana’s financial system following one of Africa’s most complex debt restructurings.

Shift from short-term borrowing to long-term financing

After the 2022 debt crisis forced reliance on short-term Treasury bills, Ghana is now pivoting back to long-term financing strategies aligned with IMF-backed reforms.

Ghana, a leading gold and cocoa producer, restructured about $13 billion of Eurobonds in October 2024, following a default and a June 2024 agreement with creditors. The overhaul included reduced principal and extended maturities to restore debt sustainability.

The planned bond sale marks a turning point, signaling Ghana’s effort to normalize market access, rebuild credibility, and re-establish itself as a competitive destination for emerging market investors seeking yield and growth opportunities.