The yield on Ghana’s $750 million Eurobond fell for a second day on the likelihood that President John Dramani Mahama will maintain policies and projects put in place by John Atta Mills, according to Eurasia Group.
Former Vice President Mahama was sworn in on July 24 after Mills’ sudden death earlier in the day in Accra, the capital.
The yield on the 8.5 percent debt, due 2017, fell 11.6 basis points, or 0.116 percentage point, to 5.622 percent as of 12:33 p.m, the lowest since July 18, according to data compiled by Bloomberg.
Mahama’s “pro-investment positions are now out in the forefront and are being viewed as a market positive,” James Clinton Francis, a sub-Saharan Africa researcher with Eurasia in Washington, said in an e-mailed comment today. “Mahama had been working in the shadows of the Mills’ administration’s campaign to attract foreign investment.”
The bond price rose 0.5 percent to 112.76 cents.
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