Ghana has successfully, issued a second five-year domestic bond through the book-building approach.
The issuance is in accordance with the implementation of the new debt management strategy outlined in the 2016 Budget Statement and Economic Policy of Government.
A statement issued by the Ministry of Finance indicated that a total of 76 bids were tendered with a face value of GH¢776.44 million, out of which GH¢746.44 million was accepted.
It said offshore investors took up 67 per cent of the total allotted bids, with price ranging from 23.50 per cent to 25.75 per cent.
“Pricing was in line with the initial price guidance range of 23.50 per cent to 25.75 per cent. The closing price of 24.75 per cent was tight at the lower end of the expected price range,” the statement said.
The statement said part of the amount accepted would be used to settle the 3-year Fixed Bond of GH¢416.00 million maturing March 7, 2016 and the remaining amount of GH¢330.44 million allocated to meet government’s refinancing and capital expenditure needs as captured in the 2016 Budget.
“The issuance of this bond gives further impetus to government’s medium term debt management strategy, which among others focuses on minimising and/or replacing expensive shorter dated instruments with longer dated issuances. It also provides a positive boost to the development of our domestic debt market,” the statement said.
The successful issuance of the bond evidenced by the generally high subscription and the favorable pricing according to the statement is a reflection of the returning confidence in the Ghanaian economy and further confirms the bright medium term prospects.
By Times Reporter