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Press Conference on 12 August 2013

THE GHANA 2013 EUROBOND

TRANSACTION

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Diversify Sources of Funding Consolidation of middle income status Decreasing flow of concessional financing

Reduce the debt service cost and rollover risk of the Ghana 2017 bond

Reduce the cost of government financing Current cost of domestic financing 19-21%

Improve tenor/length of financing the capital budget Compare tenor of 3 or 5-year (or proposed 5-year) domestic

bonds to the 10-year tenor for Sovereign Bond

GOALS

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PLANNED USE OF PROCEEDS

INDICATIVE AREAS USD (MILL) % GHS %Counterpart funding for approved projects 102 10% 204 10%New Projects in 2013 Budget 307 31% 614 31%Early Redemption of Ghana 2017 Eurobond 250 25% 500 25%Refinancing of maturing Domestic debt 341 34% 682 34%Total 1,000 100% 2,000 100%

AMOUNTS

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Budget Proposal (March 2013)Cabinet approval (April 2, 2013)Parliamentary Approval (26 June 2013)Recruitment of transaction advisors (June 2013)Preparation of transaction documents (June- July 2013Marketing of Bond (road show) (22-25 July, 2013)Launch of Transaction (25 July 2013)Pricing (26 July 2013)Launch of bond exchange off er (26 July 2013) Issue & Closing (7 August 2013)

THE PROCESS

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Lead Managers (Citigroup, Barclays) Co-Managers (EDC Stockbrokers, Strategic African

Securities) International legal counsel (Denton’s) Local legal counsel (JLD & MB) Government of Ghana Transaction Committee (MoF, Bank of

Ghana)

TRANSACTION TEAM

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Ghana’s investor roadshow was designed to be broad-reaching The Republic’s had been absent from the international bond

markets for the last six years There was a non-deal road-show in April 2013 (part of IMF/WB

Spring meetings) and some periodic meetings with some investors Two teams travelled to London, Frankfurt, Munich, Sam

Francisco, Los Angeles, Boston and New York Ghana met with 58 investors via one-on-one meetings,

group events or conference calls The Ghana team was represented by

Minister of Finance Deputy Minister of Finance Governor of Bank of Ghana Deputy Governor of Bank of Ghana Additional offi cials from both the Ministry of Finance Bank of Ghana

ROAD SHOW

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Despite current fiscal challenges, investors saw fundamental long-term value in Ghana reflected in:

Governance Political stability with strong institutions Good governance - Ghana consistently ranks in the Top 10

for African Governance (Mo Ibrahim Index) Good Business Environment Strong Reform agenda – Public Financial Management,

Financial Sector, InfrastructureThe Economy

One of the fastest growing economies in Africa A diversified economy Oil & Gas Prospects with sound revenue management under

the Petroleum Revenue Management Act

THE GHANA CREDIT STORY

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ISSUER Republic of Ghana

ISSUE RATINGS B1 Stable (Moody’s)B+ Negative (Fitch)

B Stable (Standard & Poor)

Size US$ 1 billion

Coupon 7.875%

Price 99.1515

Issue Date 7 August 2013

Maturity Date 7 August 2023

Proceeds $741,432,500 (after discount and estimated issue expenses)

Listing Irish Stock ExchangeGhana Stock Exchange (To be listed in August 2013)

TERMS OF THE TRANSACTION

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ISSUER

RATING SIZE ($MM)

ISSUE DATE

MATURITY (YRS)

Coupon (%)

YIELD AT ISSUE (%)

Ghana B1/B+/B 1,000 Aug 2012

10 7.875 8.000

Nigeria BB-/BB- 500 July 2013 5 5.125 5.375

BB-/BB- 500 July 2013 5 6.375 6.625

Rwanda

B/B 400 May 2013

10 6.625 6.875

Zambia B+/B+ 750 Sep 2012

10 5.375 5.625

Note diff erences among countries Ratings Timing or dates Size of offers Blend of offers

(Nigeria) Tenor of offers Market

conditions Processes

ANALYSIS OF RECENT AFRICAN SOVEREIGN ISSUES

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Nigeria Higher credit rating Shorter maturity (5-Year)

Rwanda Good market timing (May 2013) Before Bernanke’s announcement (Wednesday June 19) of

likely tapering of quantitative easing resulting in interest rate hikes and high market volatility

Zambia Good market timing (September 2012)

COMPARISON OF COSTS

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ISSUER

Coupon (%)

MATURITY

YIELD

Ghana 8.500 2017 5.65

Ghana 7.875 2023 8.06

Nigeria

5.125 2018 4.52

6.375 2023 5.97

Rwanda

6.625 2023 8.13

Zambia

5.375 2022 7.03

Secondary market trading indicates that Ghana’s bond is well priced

Rwanda (B) is trading at a higher yield than Ghana (B/B+) (8.13% versus 8.06%)

Therefore Rwanda is NOT more creditworthy than Ghana

Zambia is trading at a higher yield compared to Ghana 2017 (because of maturity diff erence – Ghana 2017 has shorter maturity)

SECONDARY MARKET QUOTES AUGUST 7, 2013

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INVESTORS WHO BOUGHT OUR BONDS

Summary of Order BookOrders ($m) $2,157

# of Orders 174

Allocations ($m)

$750

Allocations (# of investors)

158

Allocations to Local Institutional Investors ($m)

$16.5

U.S.A.60%

U.K.

21%

Eu-rope15%

Asia2%

Other2%

Allocations by Investor Location

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Ghana became the fi rst Sub-Saharan African country (excluding South Africa) to use the Eurobond market to manage its overall debt by: Reducing cost Reducing the risk of rollover

Ghana 2017 is a bullet bond repayable in October 2017

Risk of high interest rate or uncertain market access Prudent to initiate an orderly retirement to reduce

market risks of rollover

MANAGING OUR DEBT MORE EFFICIENTLY

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On 26 July 2013, one day after pricing of the new US$750m 7.875% notes due 2023 (the “New Notes”), Ghana launched an invitation to holders of Existing Ghana 2017 Notes to exchange their holdings for up to US$250m of new 7.875% notes due 2023

US$356m of Existing Notes were validly tendered This translated into and Exchange of $219 million

face value of the Ghana 2017The diff erence in interest costs between the Ghana

2017 bond (8.50%) and the new Ghana 2023 Bond (7.875%) translates into an estimated annual savings of $1.375MM

REDUCING THE COST AND ROLLOVER RISK OF THE GHANA 2017 BOND

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The proposed refinancing of maturing domestic debt with Eurobond proceeds is justified in the diff erence in cost between domestic debt (19 – 23%) and the Eurobond (7.875%).

Estimated annual interest savings after adjusting for exchange rate depreciation is GH¢21 – 48 million

REDUCING THE COST OF DOMESTIC DEBT

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Ghana achieved its financing objectives with the transaction Extended Ghana’s maturity profile Reduced the rollover risk of the Ghana 2017 bond Raised cost effective funds to refinance high-cost domestic

term debt Set a new benchmark and achieved a lower coupon than

Ghana’s debut 10-year USD bond Listing of notes on the Ghana Stock Exchange, facilitating

access for local investors. First sub-Saharan African country (excluding South Africa) to

listed its Eurobond on the local stock Exchange Ghanaian institutional investors (banks, insurance companies,

pension funds) participated in the offer.

CONCLUSION

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Debt policy will be guided by the principle of financing capital expenditures with domestic and international long-term debt (the upcoming debut issue of a domestic seven-year bond reflects this policy)

Project specific bonds will be raised for self-financing projects while general conventional bonds will be raised for other capital expenditures

Ghana will continue to source concessional financing for social infrastructure.

LOOKING AHEAD