Government has issued 3-year GH¢500 million fixed-rate bond through an auction process on Thursday to help restructure government debt and for maturity settlement.
According to sources, the bond is issued at par, bearing a coupon rate equal to the highest competitive bid accepted at the auction for the security, and shall carry throughout the term of the security.
The minimum bids for the bond are GH¢50,000 and in multiples of GH¢1,000 thereafter. This is eligible to both resident and non-resident investors in the country.
This is not the first time government has attempted to raise funds through the domestic bonds market in 2016.
On January 7, 2016, government failed to obtain a similar amount of 500 million cedis bond it issued to restructure its debt and maturity settlement.
Total bids received at the time amounted to 426.23 million cedis.
In May 2016, government accepted 1.123 billion cedis (294 millon dollars) for a three-year domestic bond with a yield of 24.5 percent.
Proceeds of the bond, which was open to offshore investors and sold through a book-builder’s system was expected to be used to finance the 2016 budget. Total bids received at the time amounted to 1.13 billion cedis with 71 percent coming from offshore investors
Source: citibusiness