5-year Cedi T-Bond to be issued this week

Government will this week issue a 5-year cedi-denominated treasury bond, with maturity in 2025.

This is according to a notice issued by the Bank of Ghana on Friday, June 19, 2020.

Per the government’s debt issuance calendar for the June to August 2020, an amount of GH¢800 million is expected to be issued once during the period.

Each bond to be issued shall have a face value of GH¢1, with a minimum subscription of GH¢50,000 and multiples of GH¢1,000 thereafter. The offer will be opened to both local and foreign investors.

An initial pricing guidance for the issuance of the bonds through the Ghana Stock Exchange will take place on Tuesday, June 23, 2020. This will be followed by the opening of the book-build at 9am on Wednesday, June 24, 2020.

Books will be closed midday on Thursday, around 2:30 pm, with the final pricing and allocation determined.

Successful bids will be cleared at a single clearing level. However, in the event of oversubscription, there will be a discretionary allocation at the single clearing level. Investors are expected to be settled or issued with the bonds on Monday, June 29, 2020.

The issuance calendar indicates that government aims to build benchmark bonds through the issuance of the different instruments, including the five-Year bond through the book-building method.

The five-year bond would be issued through Absa, Databank, Stanbic Bank, Fidelity Bank and IC Securities acting as book-runners for government.