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.