Luxembourg, 22/10/2007 (Agence Europe) - Last week the European Investment Bank (EIB) launched its first international bond issue denominated in GHS (Ghanaian Cedi).
The issue is for an amount of GHS 20,000,000 (€15m approximately) and carries an annual coupon of 10.75%. The bond is synthetic, with settlements and payments in euros, as determined by the Calculation Agent based on the EUR/GHS exchange rate. The bond has an issue price of 100% and matures on 26 October 2009. The transaction was co-managed by Barclays Capital & Barclays Bank of Ghana.
The bond follows recent initiatives by the EIB in African currencies in the international capital markets - in Botswana pula, Egyptian pounds and Namibian dollars. This transaction is a continuation of the EIB's aim to explore funding possibilities in relevant local currencies, notably with a view to supporting development of local currency markets but also marking a step towards potential future lending in local currency.
The EIB's issuance activities in African countries complement lending activities in the region where the Bank has been a development partner for some decades. Current cooperation is based on the Cotonou Partnership Agreement of 2000. In the past five years, the EIB has signed loans for over €140m in Ghana for projects covering a wide range of sectors, notably industry and energy.
EIB's Richard Teichmeister, Head of Funding for Europe (ex-Euro) and Africa, said: “This issue provides a top-quality alternative for investors in a market with very limited supply. It gives the EIB another opportunity to expand its presence in African partner country currencies in a way that contributes to the development of the local capital market by directing international investors' attention to African debt markets”. (O.L.)