Ghana gov’t back on bond market
Government is accepting bids from both domestic and foreign investors for the issuance of a three-year domestic bond.
It forms part of government’s deficit financing for the 2017 fiscal year with an aggregate target of Gh 12 billion a year.
The issuance would be done through the book building process with the books opening on Wednesday, March 8 and closes today, March 9.
An economic analyst with Databank Kingsley Martey told Starr Business government might be pressured to accept more bids from foreign investors to shore up the depreciating Cedi.
“Investors expected to put in bids are required to put in their bids between a range of 19% to 22%.
By looking at the pricing dynamics on the secondary bond market I believe that the final coupon rate will come out in the 20s because you require that to compensate investors and again given the low level of interest rate of the treasury bill market is so low, and not unattractive to investors and so you need such high level of interest rate to attract them,” he said.