October 27, 2017 / 8:51 PM / a year ago

UPDATE 1-Ghana's ESLA to pay 19.0 pct yield on 7-yr tranche of energy bond

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ACCRA, Oct 27 (Reuters) - Ghana’s ESLA will pay a yield of 19.0 percent on an oversubscribed 2.4 billion cedi ($548 mln) seven-year tranche of a government-backed energy bond issued on Friday to repay debts owed by power utilities, arrangers said.

ESLA, which was set up by the government to raise bonds to clear the debts, has extended the final pricing of a related 3.6 billion cedi 10-year tranche of the bond to Nov.3 at the request of investors, a government source told Reuters.

The government is seeking to raise 6 billion cedis through the twin bonds which opened on Tuesday, out of a total 10 billion cedis required to clear the debts, mainly owed to banks and bulk oil distributing companies.

“The 10-year is extended for another week upon request from some big investors,” the source said.

Total bids tendered for the 7-year paper, which will be settled on Nov.1, amounted to 2.52 billion cedis, arrangers said.

The government in June named Standard Chartered Bank and local lender Fidelity as lead managers for the bond, which is open to foreign and local investors and is backed by receivables from a petroleum tax. (Reporting by Kwasi Kpodo; Editing by Hugh Lawson)

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