Bloomberg News

Ghana Three-Year Bond May Yield 13% at Auction, SocGen Says

October 12, 2011

Oct. 12 (Bloomberg) -- Ghana’s offer of 300 million cedis ($185 million) in three-year bonds tomorrow may yield 13 percent, the same rate as the previous auction of the duration held in June, according to Societe Generale SA.

“Rising domestic inflationary pressures and fiscal uncertainties ahead of an election year with the 2012 budget still due to be announced may dampen investor interest in the issue,” according to an e-mailed note from the lender’s emerging markets analysts including Nalini Cundapen and Anne Benoit. “The currency’s poor performance over the last few months also lends support to the view that foreign interest will be minimal.”

The Ghanaian cedi has weakened 8.4 percent this year as demand by importers for dollars has climbed amid a world Bank forecast for economic growth of 20 percent this year. Inflation in September was 8.4 percent, unchanged from the two previous months, the Ghana Statistical Service said today.

--Editors: Emily Bowers, Karl Maier.

To contact the reporter on this story: Moses Mozart Dzawu in Accra at ebowers1@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.


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