Ghana set to issue maiden 10-year domestic bond to ease rates

ACCRA (Reuters) - Ghana will issue its first 10-year domestic bond next week in an effort by the debt-burdened commodity exporter to ease interest rates and raise longer term funds to support government capital expenditure, the finance ministry said on Friday. The 2026 issuance, open to non-resident buyers, will seek to raise about 200 million cedis ($50 million) through a book-building transaction that will open on Wednesday and close with final pricing on Thursday, the ministry said in a statement. Lead arrangers are Barclays Bank Ghana, Stanbic Ghana and brokerage firm Strategic African Securities. They are expected to provide initial pricing guidance for the bond on Monday. The West African country signed a three-year aid programme with the International Monetary Fund in April 2015 to restore fiscal balance to an economy dogged by public debt, high interest rates, deficits and above-target inflation. Finance Minister Seth Terkper hinted at the planned 10-year bond in a September interview with Reuters, saying the government would no longer use short-term debts for infrastructure projects. ($1 = 3.9900 Ghanaian cedis) (Reporting by Kwasi Kpodo; Editing by Aaron Ross and Alexander Smith)

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