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Ghana government considering floating rare $50bn Century Bond

Discussions about ultra-long term debts have been fraught with uncertainty due in part to interest rates fluctuations that can lower yields for investors; however, some analysts say there is a growing demand for these types of bonds.

Ghana may soon join the likes of Argentina, Austria and Mexico to issue the rare 100-year bonds to finance national projects.

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President of Ghana Addo Dankwa Akufo-Addo announced this at a ceremony in Beijing to sign some eight Ghana-China co-operation agreements.

“The Ministry of Finance and the economists in Ghana are looking at floating a $50 billion Century Bond. This will provide us with the resources to finance our infrastructural and industrial development. We are hoping that, at some stage, China will interest itself, and take a part of it as China’s contribution to Ghana’s development,” he told Chinese President, Xi Jinping on Saturday.

Many of these long-term bonds contain an option that lets the issuer to partially or fully repay the debt before the scheduled maturity.

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With Ghana exiting the IMF programme by the end of this year, President Akufo-Addo stressed that the country is determined never to return to that arrangement.

“In order to do so, we are looking seriously at how we can secure sources of long-term finance that will allow us to deal with our infrastructural development, and also realise the vision of a Ghana Beyond Aid.”

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