Ghana gets GH¢1.53 billion from 2-year bond sale, exceeds target

The Ghana government has achieved more than half of its target from the 2-year bond issuance yesterday, raising GH¢1.53 billion cedis as against a target of GH¢1 billion.

The interest rate or yield of 18.50 per cent was also in line with the secondary market levels.

A chunk of the funds would be used to settle maturing debt, whiles the remaining will be used to support government financing.

In the previous bond sale bond last month, the government accepted GH¢823.64 million for the 3-year bond auctioned on Thursday, October 1, 2020.

The interest rate of the debt instrument which would be paid semi-annually till maturity was 19.0%.

The government accepted all the bids issued for the three-year cedi-denominated bond which will mature in the year 2023.

Since the emergence of the coronavirus pandemic, the government has been accepting all bids for bonds issued so far.

A book-building approach was adopted for the latest bond sale, an indication that a pricing guideline was set before the bond was floated.

Meanwhile, the Ghana government has also exceeded its weekly Treasury Bills sale last Friday, the first time in several weeks.