Analysts hail oversubscription of 7yr bond

Analysts are hailing the massive oversubscription of the seven year Government of Ghana bond issued recently.

They say the oversubscription reflects long term investor confidence in the economy.

The long dated instrument was oversubscribed mainly by local investors to the tune of 270 million Ghana Cedis, about 170 percent growth.

The Bank of Ghana however accepted 102 million Ghana Cedis worth of the bids for an average yield of 17.5 percent.

Head of Research at Databank Group, Sampson Akligoh tells XYZ BUSINESS government securities are attractive.

“Clearly if you look at Ghana’s country profile and risk assessment the yields that we have currently is attractive. I think that this reflects the current dynamics of the country.”

Mr. Akligoh added “I think that this is an opportunity for us to retract the public debt space try to issue more long term bonds that will provide more particularly the benchmark for other capital market bond issues particularly in the private sector.”

The offshore bids of about 130 million Ghana Cedis were not accepted.