A group of Ghana’s foreign bondholders has hired advisers ahead of prospective debt talks with the government over a bailout the country hopes to get from the International Monetary Fund, according to people familiar with the matter, WSJ Pro reported. Holders of some of Ghana’s $14 billion in foreign-currency bonds have hired Rothschild & Co. as a financial adviser and Orrick, Herrington & Sutcliffe LLP as legal counsel.
Ghana's central bank announced its biggest ever interest rate hike on Monday as it seeks to slow rampant inflation that threatens to create a debt crisis in one of West Africa's largest economies, Reuters reported. The Bank of Ghana raised its main lending rate by 250 basis points to 17%, signaling an aggressive stance against the rocketing price of goods from flour to sugar to fuel, and against a depreciating local currency that has dented investor confidence.
Mexico sold its own ESG bond in early July linked to the U.N. Sustainable Development Goals, which include gender equality, zero hunger and clean water initiatives, Bloomberg reported. Slovenia, meantime, wowed investors in late June with a sustainability note for either green or social spending, which was more than 10 times oversubscribed. “Sovereigns are looking to undertake more social bonds in the wake of the COVID-19 pandemic,” Morgan Stanley strategists wrote last month.