2nd BoG three year bond oversubscribed by 100%

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• Sankofa 12 years ago

  Debt restructuring defers repayment of debt at a premium.
  
  The economic principle is to borrow within one's ability to repay. So long as loans are channelled into productive investment in the economy, borrowing is justified ...
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  Debt restructuring defers repayment of debt at a premium.
  
  The economic principle is to borrow within one's ability to repay. So long as loans are channelled into productive investment in the economy, borrowing is justified.

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• DAN 12 years ago

  what does it tell you that 98% from outside the country? That no Ghanians bought their countrys bonds!

  what does it tell you that 98% from outside the country? That no Ghanians bought their countrys bonds!

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• Michael 12 years ago

  Mr Dan. The article says 98% not 100%. 100 minus 98 is NOT equal to zero.

  Mr Dan. The article says 98% not 100%. 100 minus 98 is NOT equal to zero.

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• Adongo 12 years ago

  I am wondering how the Government could pay back such a yield of 15%. Hopefully, government will channel the investment into productive ventures else the deficit will increase and our credit rating will be downgraded. A yield ...
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  I am wondering how the Government could pay back such a yield of 15%. Hopefully, government will channel the investment into productive ventures else the deficit will increase and our credit rating will be downgraded. A yield of 15% is a lot of money to pay back on a three year bond. It may look attractive to foreign investors but is it the right way for government to raise money?

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• Nana 12 years ago

  Anybody will buy this bond at such astronomical rate. This is bad for our country. Don't cry for me Argentina?

  Anybody will buy this bond at such astronomical rate. This is bad for our country. Don't cry for me Argentina?

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• John 12 years ago

  I like the Argentina link. We never learn, do we?

  I like the Argentina link. We never learn, do we?

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• Sankofa 12 years ago

  Government will sell more bonds to raise funds to finance the yield.
  
  So long as investors (foreign and local) have confidence in the economy, they will buy the bonds as the yield is very attractive.

  Government will sell more bonds to raise funds to finance the yield.
  
  So long as investors (foreign and local) have confidence in the economy, they will buy the bonds as the yield is very attractive.

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• Nicholas 12 years ago

  Bond theory 101 at work. Analyst expected 15 -15.5 % but the issue eventually goes for 16.9%. Woow. And then the article goes on to say " this shows investor confidence in Ghana is very high"
  
  Does XYZ business undersatnd t ...
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  Bond theory 101 at work. Analyst expected 15 -15.5 % but the issue eventually goes for 16.9%. Woow. And then the article goes on to say " this shows investor confidence in Ghana is very high"
  
  Does XYZ business undersatnd the basics of bond issues or valuation of bonds for that matter?
  
  These investors are not lookng for capital gain but the fixed income from the high interest rate. So oversubscription does not translate into investor confidence! Hahaaa, bond 101!
  
  And why is Databank expecting yields to decline when the economy is tumbling? Have you listened to the financial news about the state of the Ghanaian econmy?
  
  How can that be something to celebrate about?

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• Forthright 12 years ago

  The comment "the Ghanaian fixed income market is so attractive to investors DESPITE the expected decline in the yield curve" bertays a lack of understanding of bonds. The expectation that yields will fall should explain the h ...
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  The comment "the Ghanaian fixed income market is so attractive to investors DESPITE the expected decline in the yield curve" bertays a lack of understanding of bonds. The expectation that yields will fall should explain the high appetite for the excessively priced Ghanaian bonds.

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• Forthright 12 years ago

  Poor theory

  Poor theory

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• KK 12 years ago

  INITIATE DIASPORA BONDS JUST LIKE ISREAL, CHINA, INDIA AND RUSSIA WHICH CAN BE USE FOR INFRUSTRUCTURE IN THE COUNTRY SIMILA RATE. BOND ESTABLISH THE BOND MARKET. BOND SELLING IS VERY COMMON, THE USA, CANADA AND REST DOES IT. ...
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  INITIATE DIASPORA BONDS JUST LIKE ISREAL, CHINA, INDIA AND RUSSIA WHICH CAN BE USE FOR INFRUSTRUCTURE IN THE COUNTRY SIMILA RATE. BOND ESTABLISH THE BOND MARKET. BOND SELLING IS VERY COMMON, THE USA, CANADA AND REST DOES IT. USE DOES IT TO PAY GOVERNMENT LOANS CALL QUANTITATIVE EASING, HEAVY CHINESE LOANS THEY OWNED CHINA. GHANA SHOULD REFRAIN FROM PCHINESE AND OTHER FOREIGN LOANS PRINTING MONEY WHICH USA DOES. USA CAN AFFORD BECAUSE THEY HAVE HEAVY TAX PAYERS THAT IF CONGRESS ALLOW THEY CAN BE ABLE TO COME OUT THEIR CURRENT SITUATION BUT LIKEWISE GHANA, THE TAX SYSTEM IS NOT FULLY STREAMLINE YET. GHANA WILL NEED CONTINUE TESTREET NAMING , TECHNOLOGY, GOOD EMPLYMENT THE POPULATION, STREETNAMING, PROPER ADDRESSES AND ELIMINATE UNDERGROUND ECONOMY WHICH ENDED UP GREECE, SPAIN , PORTUGAL IN DEBTS

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• ADOVI 12 years ago

  IT´S BETTER .THIS IS THE FUTURE . EVEN IF INTREST RATE IS 50% IT GOES TO GHANAIANS/AFRICANS .MORE BONDS PLEASE !!!!!!

  IT´S BETTER .THIS IS THE FUTURE . EVEN IF INTREST RATE IS 50% IT GOES TO GHANAIANS/AFRICANS .MORE BONDS PLEASE !!!!!!

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• paa joe 12 years ago

  Yield too high.

  Yield too high.

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• Owura Kofi 12 years ago

  Why won't foreign investors rush to scoop the bonds? A yield of 16.9% isn't easy to find anywhere in the developed world.
  Even if they factor in the inflation rate and foreign exchange rate, they still see a great deal.
  
  ...
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  Why won't foreign investors rush to scoop the bonds? A yield of 16.9% isn't easy to find anywhere in the developed world.
  Even if they factor in the inflation rate and foreign exchange rate, they still see a great deal.
  
  These days, in other countries, a yield of 7% and up is considered by governments as too high. Anyone following events in the PIGS countries- Portugal, Ireland, Greece, and Spain would know what I mean.
  
  The danger for the Ghana is, when the foreign investors sense any uncertainty or instability in the country, and decide to bailout before the maturity.
  
  Malaysia, Russia, Argentina and others for had a rude awakening with foreign investors in their money markets. Ghana beware.

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