#Ghana #eurobond: the end of cheap #African #debt? - This is Africa

Ghana sold a $750m 10-year eurobond but paid a premium to investors in its second entry into international bond markets, sparking debate about the end of cheap frontier market borrowing costs.

West Africa’s second biggest economy issued the note at a yield of 8 percent, significantly above the 6.6 percent Nigeria paid for its 10-year sovereign bonds earlier this month, or the 6.9 percent paid by the tiny east African state of Rwanda for its first $400m issue in April.

At the height of the emerging market debt rush, Zambia paid only 5.6 percent for its maiden dollar-denominated bond - a lower rate than that on Spain’s 10-year bond at the time, despite the fact that the European country’s credit rating is four times higher.

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