Accra — Ghana is selling the longest-dated Eurobond ever issued by a sub-Saharan African government as it looks to raise as much as $3bn. 

West Africa’s second-biggest economy entered the market on Tuesday offering a three-part dollar transaction with final maturities of 2027, 2035 and 2061, according to a person familiar with the matter who asked not to be identified.

Initial yield talk for the longest tranche, which will amortise and have an average life of 40 years, was set around 9.375%, according to the person. That would be the highest-yielding sovereign Eurobond of the year so far. The other tranches, which also amortise, have price guidance of 6.75% and 8.5%, respectively.

Ghana said in September 2018 that it planned a century bond in dollars. While that didn’t happen, it sold a $1bn instrument for 2051 with a yield of 8.95% six months later.

Ghana’s sale comes at a time when the premium that investors demand to hold riskier assets is rising, partly due to the global coronavirus concerns. Spreads on emerging-market government dollar bonds have widened to 313 basis points over US treasuries, from 291 basis points at the start of the year, according to a JPMorgan Chase.

Bank of America Merrill Lynch, JPMorgan Chase, Morgan Stanley, Standard Bank Group and Standard Chartered are arranging Tuesday’s sale.

Bloomberg