Ghana divides opinion with zero coupon

AdobeStock_Ghana_down_trading_575x375_31March2021
By Mariam Meskin
31 Mar 2021

The Republic of Ghana brought innovation to the emerging market bonds this week, by selling Africa’s first zero coupon international deal. But the “risky” trade ignited debate among bankers and investors after it attracted a smaller order book than expected and required generous pricing as debt sustainability concerns swirled.

Ghana (rated B3/B-/B) raised $3.025bn on Monday in a Reg S/144A deal, consisting of a four year and tranches with weighted average lives of seven, 12 and 20 years.

That deal took the shape of a $525m 0% April 2025 tranche; a $1bn 7.75% April 2029 piece; a $1bn 8.625% April 2034 ...

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