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Ghana Telecommunication Co. sold $200 million of bonds in the West African nation's first corporate issue in dollars, three months after the government issued its first international bonds.

Iroko Securities Ltd in London helped Ghana Telecomm sell five-year notes with a coupon of 8.5 percent. London-based broker Exotx Ltd said in an e-mailed statement today. Iroko's Mauritius-based parent and Exotix placed the debt with more than 12 investors.

Ghana Telecom's issue "is proof of the purpose and the success of the government and Ghana Eurobond issue, one objective of which was the ability to establish a benchmark," Guy Essome, director of structured products for Iroko Securities, said in the statement.

Ghana sold $750 million of 10-year notes in September. Emerging-market debt has rallied after the slump in global credit markets sent JPMorgan Chase & Co.'s benchmark EMBI Global Index to a nine-month low of 380.6 on August 16. The index was at 406.8 today.

Ghana Telecom's unrated issue was priced to yield 1 percent more than the Ghanaian government's bonds, according to today's statement. The government securities are rated B+ by Standard & Poor's and Fitch Ratings, four levels below investment grade.

The securities "restore Ghana Telecom's financial flexibility and access to the vendor financing needed to support the much-needed upgrade and extension of our fixed and mobile networks," Chief Financial Officer, Joe Owusu-Ansah said in the statement.

Editors: Michael Shanahan, Andrew Reierson December 17 2007 13:06:40

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