Ghana lawmakers on Wednesday approved the government’s proposal to borrow $750 million from Standard Chartered Plc and Standard Bank Group Ltd. for budget expenses.

The bridge financing, which will be paid back with proceeds from a Eurobond offering, is being sought for a minimum period of three months and not more than six months, Mark Assibey-Yeboah, chairman of the finance committee in Ghana’s Parliament, said by phone.

It comes at a cost of one month Libor plus 350 basis points.
The country will start investor meetings in the U.S. and London for the Eurobond sale from Thursday.

Ghana is targeting a Eurobond sale of up to $2 billion to finance its budget deficit and an additional sale of $1 billion to refinance existing debt. The country is facing difficult first-quarter budget demands, Minister of Finance Ken Ofori-Atta said on March 11.

Credit: Bloomberg

(By By Moses Mozart Dzawu)