Ghana Postpones Eurobond Sale

Ghana’s proposed Eurobond sale, which would have been its fifth in nine years, has been put on hold amid rising costs and political uncertainty.

Instead Ghana will monitor markets for a potential new issue date, according to a source familiar with the plans. The West African nation will precede with a cash tender offer up to $100 million of bonds due in 2017; he is reported to have said.

Ghana’s dollar bonds due 2023 have tumbled, pushing yields up by more than 55 basis points since July 22 to 10.25 percent on Tuesday, compared with a 48 basis-point drop to 6.8 percent in average yields of 17 sub-Saharan African nations, according to Bloomberg.

Richard Segal, an analyst at Manulife Asset Management in London who attended an investor meeting on Monday, said: “It’s 30 percent pricing and 70 percent bad timing,” “Investors asked more than they were willing to pay,” Bloomberg reported.