Ghana to issue domestic bonds

Wampah PixThe Bank of Ghana (BoG) plans to issue a number of bonds, including a 400 million-cedi, seven-year domestic bond in April in a fresh bid to use longer-term maturities to restructure the country’s rising debt.

The bank will also issue five-year bonds in March and June to raise GH¢ 440 million each, and three-year paper worth GH¢630 million each in February and May to roll over maturing debts.

According to the BoG, short-term treasury bills and notes (91-day treasury bill, 182-day treasury bill, one-year note and two-year note), to be open only to local investors, will be issued from January to June.

Issuance decisions for the treasury bills and notes will be made weekly depending on government’s projected daily cash position for the week ahead, the central bank said in its issuance calendar released in Accra.

“It is envisaged to issue at least GH¢880 million of treasury bills and notes weekly at all times to support government liquidity requirements which will include the redemption/rollover of maturing securities for the week,” the bank said.

The central bank aims to raise a total of GH¢25.4 billion ($7.88 billion) in domestic securities before July.

The country’s third seven-year domestic bond, expected to finance infrastructure projects, among others, will be available to both resident and non-resident investors.

The bank issued its debut seven-year domestic bond in August 2013 and held a similar auction three months later with yield at 18 per cent yield.

The government did not issue a seven-year bond last year as it wanted to avoid a spike in yields following a slump in the local currency.

Ghana is seeking aid from the International Monetary Fund as it grapples with fiscal problems including a debt-to-gross domestic product ratio above 60 per cent.

By Times Reporter

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