Ghana has raised $3 billion in a eurobond auction that was oversubscribed five times, the government said on Wednesday.

It sold on Tuesday $1.25 billion in 7-year bonds at a coupon of 6.375%, $1 billion in 15-year bonds with a coupon of 7.875% and $750 million in 41-year paper with a coupon of 8.875%.

The 41-year eurobond is the longest-dated bond for an African country, the government said in a statement.

South Africa has issued 40-year bonds in the past. Ample liquidity in financial markets and historically low interest rates from major central banks around the globe have seen borrowing costs in many emerging markets come down.

Ghana’s outstanding dollar-bond maturing in 2051 currently yields just over 8.6%. The government statement cited Finance Minister Ken Ofori Atta as saying the lower rates reflected a reduced risk premium because of improving economic conditions in Ghana, which produces oil, cocoa and gold.

The West African nation has enjoyed some economic stability since the conclusion of a three-year lending programme with the International Monetary Fund last year, though the government expects economic growth to slow and the budget deficit to rise in 2020.

Source Nasdaq