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Uganda Cancels Eurobond Plans For China’s Cheap Money

Uganda Cancels Eurobond Plans For China’s Cheap Money

From Reuters via New Vision

Uganda has shelved plans to issue a Eurobond as it can borrow money more cheaply from China, a finance ministry official said on Monday.

Permanent Secretary Keith Muhakanizi said launching a sovereign bond was no longer a priority while Asia’s economic powerhouse was providing loans at favourable rates.

“We have shelved the Eurobond plans for now because China is willing to give us cheaper money,” Muhakanizi told Reuters by telephone.

Uganda had not set a date for a Eurobond issue but had touted the idea for a while as it gears up to becoming an oil producer as early as 2016.

Last month, Uganda received support from the International Monetary Fund to lift its ceiling on non-concessional borrowing to $2.2 billion from $1.5 billion. The IMF said this was to help fund electricity generation projects needed to close an acute power deficit.

Read more at New Vision