Rand Merchant Bank (RMB) has disclosed that it acted as Joint Lead Manager and Joint Bookrunner (JLM), alongside other transaction parties, in Ghana’s four-tranche Eurobond.
According to a statement, RMB also acted as Dealer Manager on Ghana’s Tender Offer on its 2023 maturity Eurobonds.
“RMB is proud to have assisted Ghana to issue a new money Zero Coupon Senior Unsecured Eurobond, the first of its kind by an Emerging Market (EM) sovereign,” it added.
Ghana’s Minister for Finance, Ken Ofori-Atta,
who was sworn in on March, 30, 2021, had in the past made a case for the creation of an, “inclusive global forum to rebuild the international financial and economic architecture and a new ability to respond equitably and rapidly to such a catastrophe.”
The effective execution of the zero-coupon Eurobond tranche was another step towards achieving the vision and helps to create additional fiscal space to assist Ghana Build Back Better post the Covid-19 impact on the economy.
“RMB is pleased to have been able to assist the government to achieve its goal on this transaction. The issuance further demonstrates the RMB Debt Capital Markets Team’s expertise, innovation and ability to execute amidst a volatile market backdrop.
“This issuance enables the Ministry of Finance to raise funds to refinance more expensive shorter-dated debt with affordable term debt,” the statement added.
This transaction was preceded by a 3-day virtual deal roadshow, where Ghana presented its impressive credit story to global fixed income investor base, whilst emphasising the government’s focus on fiscal consolidation, completion and continuity as the economy recovers from the impact of the pandemic.
Commenting on the transaction, Global RMB CEO, James Formby said: “Ghana has always been a trailblazer as an issuer in the capital markets and was the first Sub-Saharan African Sovereign to issue a 40-year Eurobond.
“RMB is delighted to have been appointed by Ghana to jointly lead the execution of this Eurobond, especially the novel Zero Coupon tranche.
“The appointment of RMB as Joint Lead Manager and the successful outcome of the transaction can be attributed to RMB’s commitment to Ghana through our on the ground presence, and the continuous investments we have made in our global credit distribution platforms.”
On his part, the CEO of First National Bank Ghana, Dominic Adu said: “Our agility in turning around the transaction within a short period enabled Ghana to navigate the choppy waters in the markets and achieve the government’s objectives in terms of their debt management strategy.
“The services of RMB’s leading Debt Capital Markets Team, based in London, a key financial hub, and remains available to African issuers to help them direct capital into the continent for investment, growth, and development.”