global energy

The government of Ghana is set to enter the domestic market on Tuesday to raise 6 billion Ghana cedis (1.36 billion U.S. dollars) via energy bond.

This will be the first part of a planned 10 billion Ghana cedis (2.28 billion dollars) energy sector local currency denominated bond, fund managers have said.

The bond is expected to be used to clear legacy debts owed by public sector energy utility companies to commercial banks in the country.

Debts owed by public sector utility services to local commercial banks stood at about the equivalent of 2.4 billion dollars by close of 2016 and nearly brought down the Ghanaian banking industry with interest rates going through the roof.

An energy sector levy was introduced in 2016 to raise funds to be used to clear the debts as the energy crisis deepened. Enditem

Source: GNA/NewsGhana.com.gh

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