{"id":368705,"date":"2017-11-06T14:13:32","date_gmt":"2017-11-06T14:13:32","guid":{"rendered":"http:\/\/citifmonline.com\/?p=368705"},"modified":"2017-11-06T14:13:32","modified_gmt":"2017-11-06T14:13:32","slug":"energy-bond-unsuccessful-after-two-tries","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/11\/energy-bond-unsuccessful-after-two-tries\/","title":{"rendered":"Energy bond unsuccessful after two tries"},"content":{"rendered":"
ESLA PLC, failed to meet its target for the first tranche of the bond after a second attempt.<\/p>\n
The managers of the bond were seeking to raise 6 billion cedis under two separate bonds.<\/p>\n
But it accrued a total of 4.6 billion cedis after it closed the auction last Friday.<\/p>\n
The 7-year bond received the targeted 2.4 billion cedis while the 10-year bond accrued about 2.2 billion cedis, below the target of 3.6 billion cedis.<\/p>\n
The managers also accepted an interest rate of 19.5% for the 10-year bond.<\/p>\n
ESLA which has been given the mandate by Government to issue the bond a week earlier auctioned the bond but received low proceeds forcing it to\u00a0extend the auction by another week<\/a><\/strong><\/span>.<\/p>\n Proceeds of the bond are to be used to clear the debt in the energy sector which as at December 2016 was 2.5 billion dollars.<\/p>\n Lead managers of the bond, Standard Chartered Bank and Fidelity Bank, have however told Citi Business News<\/strong> the move is a target program hence managers of the bond will continue to engage the market and if the market pricing is right, they will take it.<\/p>\n Also,\u00a0above the 6 billion cedis target amount the managers say they will revalue the whole program and go into the market when the conditions are right, depending on the cash flows.<\/p>\n Government\u00a0in June this year announced Fidelity Bank and Standard Chartered Bank as lead managers of the bond.<\/p>\n