Business News of 2014-01-07

Ghana to issue third seven-year bond in May

Government through the Bank of Ghana will issue the county's third seven year bond in May this year to raise GHC 300 million.

This notice was contained in the Bank of Ghana calendar for the issuance of government securities released Tuesday, January 7, 2014. The central bank would also sell one five-year bond in March and 3 three-year bonds in February, April and June this year.

In all, the Bank of Ghana is hoping to raise some GHC12.7 billion Ghana from the sale of government securities from January to June. The country last year issued two seven-year bonds in August and November to raise GHC100 million each.

Some Analysts are hopeful the issuance of these long term bonds would encourage some corporate institutions as well as government agencies like the Volta River Authority (VRA), to issue long-term bonds to finance their operations.

Joy Business has gathered that the government is using the issuance of these bonds to explore the possibility of selling a 20-year bond soon.