15 Questions
What are the costs associated with the local government doing a bond issue?
Transaction costs, similar to loan origination costs charged by banks
What percentage of the bond offerings did the transaction costs equal in the case of the first municipal bond issued by the case study city in 1998?
2.89%
What is the role of a financial advisory firm in the municipal bond issuance process?
Assisting in the bond issuance process
What is the purpose of credit rating agencies in the municipal bond issuance process?
Providing credit ratings for the bond issue
What is the role of a trustee in the municipal bond issuance process?
Providing trusteeship services
What is the purpose of marketing to investors in the municipal bond issuance process?
To attract investors to purchase the bonds
What documents are prepared as part of the bond issuance process?
Prospectus and legal documents
What is the outcome of the transaction support services in the municipal bond issuance process?
Completion of the transaction
What is the role of SNTA in the municipal bond issuance process?
Providing technical assistance
What is the purpose of the institutional credit rating project in the municipal bond issuance process?
To support the credit rating of the bond issue
What are the key steps involved in the issuance of a municipal bond, and how do they relate to the issuance of a corporate bond?
The key steps involved in the issuance of a municipal bond include preparation, authorization, structuring, marketing, and execution. These steps are equivalent to those in the issuance of a corporate bond, with the main difference being the entity issuing the bond.
What are the main determinants of corporate credit ratings, and how do they impact a bond issuance?
The main determinants of corporate credit ratings include the company's financial health, management quality, industry outlook, and competitive position. A higher credit rating can lead to lower interest rates and better access to capital markets, while a lower credit rating can increase the cost of borrowing and make it more difficult to access capital markets.
What is the role of credit rating agencies in Ghana, and how do they contribute to the development of the bond market?
Credit rating agencies in Ghana provide independent assessments of the creditworthiness of bond issuers, which helps investors make informed investment decisions. By providing timely and accurate credit ratings, these agencies contribute to the development of the bond market by increasing transparency, reducing risk, and promoting investor confidence.
What are the key factors that determine the feasibility of a municipal bond issue in Ghana, and how do they impact the success of the issue?
The key factors that determine the feasibility of a municipal bond issue in Ghana include the financial health of the municipality, the availability of financial resources, the regulatory environment, and the demand for municipal bonds. These factors can impact the success of the issue by influencing the interest rates, tenure, and overall attractiveness of the bond to investors.
What is the importance of a financial advisory firm in the bond issuance process, and how do they contribute to the success of the issue?
A financial advisory firm plays a crucial role in the bond issuance process by providing expert advice on structuring, pricing, and marketing the bond. They contribute to the success of the issue by helping the issuer to navigate the complexities of the bond market, identify potential risks, and optimize the terms of the bond.
Learn about the first municipal bond issue in a developing country in South Asia, including the steps that led to its success. Discover the challenges and opportunities of urban infrastructure development.
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