Ken Ofori-Atta

Gov’t to raise GH¢17.96bn in bonds from domestic market for second quarter

Government is seeking to raise a total of 17.96 billion cedis in bonds, from the domestic market for the period spanning April to June, 2020.

This is about 6% less than the 19.09 billion cedis targeted for the first quarter of 2020, from January to March.

Per the issuance calendar published by the Bank of Ghana, the amount to be raised is to enable government meet its financing needs for the year.

The government is expected to use 13.68 billion cedis representing 76.17% of the amount to roll over or settle some existing debts which are due for payments.

The remainder, 4.28 billion cedis, representing about 24% will be fresh issuances to finance government’s expenditure plans outlined in the national budget.

According to the calendar, the highest amount, expected to be raised, which is 8.2 billion cedis will be through 91-day Treasury bills.

This is followed by a 364 day Treasury bill which is expected to raise 2.75 billion cedis.

A 3-year bond to be issued in April and June, is expected to raise 1.8 billion cedis altogether.

Like the first quarter issuance, the second quarter will have a 20 year-bond to be issued in June to raise approximately 288 million cedis.

In addition, there will be the issuance of 7 and 10 year bonds in April and June respectively, to raise 800 million cedis each.

While the issuance calendar is in line with the government’s Medium Term Debt Management Strategy for 2020 to 2023, government maintains that the calendar has been developed taking into consideration its liability management programme, market developments (both domestic and international) and the Treasury & Debt Management objective of lengthening the maturity profile of the public debt.