Gov’t in search of transaction advisor

The government of Ghana has started searching for a transaction advisor for the $2.5 billion energy bond it intends issuing soon.

The selected transaction advisor will facilitate the process leading to the issuance of a Cedi denominated long-term bond to repay the outstanding obligations of the energy sector.

The shortlisted firm is expected to advise government for six months.

Government’s indebtedness to the energy sector has been cited as one major threat to its growth.
The issuance of an energy bond they believe will rescue the country from its power crisis.
Such debts, including others owed by BDC, has almost pushed some banks to the verge of collapse.

The Executive Director, Philip Owiredu told Accra-based Starr FM, the debt servicing process must be effective to reduce the impact of the debt on banks and economy at large.

“The energy sector debt does not impact on the bank but the economy as a whole, so the earlier it is resolved the better,” he said.
However, this bond is expected to improve the financial strength of the State Owned Enterprises (SOEs) in the energy sector, the banks and other industry players.