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Govt accepts GH¢967.5m in 5-year domestic bonds

July 25, 2016, 10:43 a.m.

Government accepted GH¢967.5m worth of bids for a five-year domestic bond issued on Thursday and will pay a fixed yield of 24.75 per cent, transaction arrangers said.

Total bids tendered at the sale, which was open to foreign investors, amounted to GH¢972.5 million, said the lead team consisting Barclays Bank, Stanbic Bank and the Accra-based Strategic African Securities.

Proceeds from the bond will be used to roll over maturing debt as government, which relies heavily on export of gold, cocoa and oil, seeks to restructure its public debt.

Ghana's total public debt stood at $27.4 billion, representing 66.4 per cent of GDP, by May this year. 

The government plans to issue a Eurobond of up to $1 billion this year to finance the government's budget.

The yield on Thursday's bond edged up compared to a similar transaction last month when Ghana sold GH¢811.04 million worth of bonds at a rate of 24.5 per cent.

Ghana is implementing a three-year aid programme with the International Monetary Fund to fix an economy dogged by deficits, high interest rates and distressing public debt, with inflation persistently above targets.

Source: Reuters

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