Latest news with #MarkBohlund
News24
07-05-2025
- Business
- News24
Ghana rides high with a world-beating currency
• For more financial news, go to the News24 Business front page. Ghana's inflation rate fell to an eight-month low in April as the West African nation's world-beating currency helped rein in import costs. Consumer prices rose 21.2% in April, compared with 22.4% the month before, Government Statistician Alhassan Iddrisu told reporters in the capital, Accra, on Wednesday. Prices rose 0.8% in the month. Non-food price growth decelerated to 17.9% from 18.7%, as a rally in the cedi reduced the cost of imports. The currency has strengthened almost 16% against the dollar since the start of April, making it the world's best-performing currency, according to data compiled by Bloomberg. Food inflation cooled to 25% from 26.5%. The data is unlikely to persuade the central bank to lower interest rates later this month, as it awaits further evidence of a slowdown in price-growth after its surprise 100 basis-point increase in March to 28%, said Agyapomaa Gyeke-Dako, a senior lecturer and economist at the University of Ghana Business School. It tightened at its last meeting to 'mop up any excess liquidity, so now the central bank action going forward may not readily reduce the monetary policy rate yet because there might still be some threats to inflation coming from the hikes in utility prices,' she said before the data release. The Bank of Ghana may also be reluctant to ease policy as 'easier monetary conditions could rekindle inflationary pressures,' said Mark Bohlund, a senior credit analyst at REDD Intelligence. Cuts may be on the horizon later in the year if the disinflation process continues. Governor Johnson Asiama said at the March meeting that as the monetary authority sees 'the next readings of inflation and we see declines, the committee will reassess the scope for a gradual easing in the policy stance.' Price growth in the world's second-largest cocoa grower has been above 10% — the upper limit of the central bank's target band — since September 2021 as a debt crisis led to a plunge in the cedi, making imports more costly. The MPC expects inflation to slow to about 16% by the end of this year and return to the 6%-10% band by the second quarter of 2026. The International Monetary Fund also expects inflation to slow further because of the government's pledge to curb rising living costs and support the cedi with fiscal adjustments. 'It makes us very confident that inflation is going to go down in the next few months toward the program objectives,' Stéphane Roudet, IMF's mission chief to Ghana, said in Washington in April.
Morocco World
26-03-2025
- Business
- Morocco World
Bloomberg: Morocco Raises €2 Billion in Euro Bonds for World Cup Projects
Doha – Morocco successfully raised €2 billion ($2.2 billion) in euro-denominated bonds on Wednesday, exceeding initial expectations by €500 million in its first eurobond sale since 2020. According to Bloomberg, citing sources familiar with the matter, the sale attracted over €6.75 billion in total bids. The North African country issued the bonds in two tranches. The final spread for the four-year note settled at 155 basis points over midswaps, significantly tighter than the initial price talk of 190 basis points. The 10-year note landed at midswaps plus 215 basis points, also narrower than initial discussions. BNP Paribas SA, Citigroup Inc., Deutsche Bank AG, and JPMorgan Chase & Co. are serving as bookrunners, with Lazard Inc. acting as adviser. Last month, Finance Minister Nadia Fettah Alaoui stated in AlUla, Saudi Arabia, 'Today we need euros more than dollars.' The yield on Morocco's existing euro notes due March 2026 had decreased by approximately one percentage point since early 2025, reaching 3.03% in February. The funds will support Morocco's preparations for co-hosting the 2030 FIFA World Cup with Spain and Portugal. According to Bloomberg calculations based on government data, the country's total spending through 2035, including costs from the 2023 earthquake, is projected to reach at least $35 billion. Mark Bohlund, senior credit research analyst at Redd Intelligence, suggested Morocco might issue the bonds after securing a flexible credit line renewal from the International Monetary Fund, noting: 'It lowers the yields and offers a buffer against potential external shocks.' Read also: 2030 World Cup: Is Morocco's Economy Ready for a $5 Billion Event? The World Bank reinforced its support for Morocco's World Cup preparations on February 27, when World Bank vice president for MENA, Ousmane Dione, met with Budget Minister Fouzi Lekjaa in Rabat to discuss translating planned investments into economic opportunities. Earlier in February, the Arab League's Economic and Social Council pledged economic support during its 115th session, calling on member states to back Morocco's World Cup preparations. This followed the Gulf Cooperation Council's commitment to 'provide all forms of support and cooperation' announced by Secretary-General Jassim Muhammad Al-Budaiwi in December 2024. Investment projects include railway expansion, airport modernization, road networks, deep-sea ports, desalination plants, and investments in green hydrogen and renewable energy infrastructure. Morocco, which holds the highest non-investment grade rating from all three main rating companies, previously sold $2.5 billion of dollar debt in 2023. The current bond sale comes as the central bank implements its second consecutive interest rate cut to ease local borrowing costs and encourage investment. Tags: 2030 World CupEuro Bonds
Morocco World
20-02-2025
- Business
- Morocco World
Morocco Plans Euro Bond Issue to Fund Infrastructure, World Cup Projects
Doha – Morocco is preparing to return to the international bond market with a euro-denominated issuance, marking its first such move since 2023, as the North African country gears up to finance major infrastructure projects ahead of co-hosting the 2030 FIFA World Cup. 'Today we need euros more than dollars,' said Finance and Economy Minister Nadia Fettah Alaoui during an interview at a conference in AlUla, Saudi Arabia. Morocco 'can be ready anytime' for the bond sale but is waiting for January's market volatility to subside, she stated. This will be the government's first euro-denominated bond since 2020, when Morocco issued a €1 billion bond with two €500 million tranches, following a dollar issuance in 2023 that raised $2.5 billion through two $1.25 billion tranches with 5-year and 10-year maturities. The yield on Morocco's existing euro notes due in March 2026 has decreased by approximately one percentage point since early 2025, reaching 3.03% on Wednesday. The planned bond issue comes as part of a broader financing strategy, with lawmakers setting a $6 billion ceiling for new foreign debt in the 2025 budget bill. The bond sale is expected to raise one-third of this amount, while bilateral and institutional partners will provide the remaining funds. The financing will support various infrastructure projects, including railway expansion, fleet enhancement for the national carrier, construction of two deep-sea ports, and development of twelve desalination plants. The country also plans to invest in green hydrogen and renewable energy projects. Read also: Morocco to Loosen Dirham Peg to Euro-Dollar Basket by 2026 Additionally, the government needs to secure at least $2 billion for pension reforms scheduled for this year. Mark Bohlund, senior credit research analyst at Redd Intelligence, said Morocco might issue the bonds after securing the renewal of a flexible credit line from the International Monetary Fund. 'It lowers the yields and offers a buffer against potential external shocks,' Bohlund asserted. According to Bloomberg calculations based on government data, Morocco's total spending through 2035, including costs from the 2023 earthquake, will reach a minimum of $35 billion. The European Union, as Morocco's primary trading partner, is expected to play a crucial role in financing these infrastructure projects, particularly those related to the 2030 World Cup, which Morocco will host alongside Spain and Portugal. Tags: Euro Bondsworld cup 2030
