This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Ghana Bonds Fall After Finance Minister Warns Energy Debt Could Double by 2027
March 5, 2025
Ghana’s dollar bonds fell across the curve after its Finance Minister suggested that the country’s energy debt could double by 2027 if left unchecked. Ghana’s total outstanding obligations stood at $4.5bn at the end of 2024. According to him, energy debt is being driven higher by distribution and collection losses by the state-run Electricity Company of Ghana (ECG). Additionally, lack of competition in the power generation industry, and tariffs set below the cost of production has contributed to the debt pile. ECG is also currently able to resell only ~62% of the energy it buys. The Minister of Energy said that the government will seek private-sector participation in energy distribution and revenue collection. A decision would be taken within six months on whether a full privatization or a concession model would take place, wherein the successful bidder gets a specific number of years to run operations before reverting back to the state.
Ghana’s dollar bonds fell by over a point, with its 5% 2029s down 1.5 points to 88.2, yielding 10.5%.
For more details, click here
Go back to Latest bond Market News
Related Posts:
Ghana President Rules Out Debt Haircuts as Part of Negotiations
October 31, 2022
Ghana Proposes Up to 30% Haircut on Debt to Offshore Creditors
November 25, 2022
Ghana Receives Draft Agreement From Creditors
May 27, 2024
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.