Finance Minister
Government has failed to raise GHC500 million through the issuance of a three-year domestic bond.
Information gathered by Starr Business indicates that government only raised GHC341 million but accepted only GHC303 million.
Government is seeking to use the funds to roll over maturing securities.
However, critics have expressed worry about Ghana’s ballooning public debt which currently stands at 99.9 billion cedis as at the end of December 2015.
The bond, which had a minimum bid of GHC50,000, and multiples of GHC1,000 thereafter shall have a face value of one Ghana cedi.
Some domestic bonds issued in 2016
This is not the first time government has attempted to raise funds through the domestic bonds market in 2016.
On January 7, 2016, government failed to obtain a similar amount of 500 million cedis bond it issued to restructure its debt and maturity settlement.
Total bids received at the time amounted to 426.23 million cedis.
In May 2016, government accepted 1.123 billion cedis (294 millon dollars) for a three-year domestic bond with a yield of 24.5 percent.
Proceeds of the bond, which was open to offshore investors and sold through a book-builder’s system was expected to be used to finance the 2016 budget.
Total bids received at the time amounted to 1.13 billion cedis with 71 percent coming from offshore investors.
