Gov't sells GHC1.123bn 3-year domestic bond at 24.5% yield

Ghana accepted GH¢1.123bn ($294mn) for a three-year domestic bond with a yield of 24.5 per cent, sources close to the transaction told Reuters on Thursday.

Proceeds of the bond, which was open to offshore investors, will be used to finance the government's 2016 budget.

It was sold through a book-builder's system arranged by Barclays Bank, Stanbic and Strategic African Securities.

Total bids received amounted to GH¢1.13bn, with 71 per cent of that coming from offshore investors, the source said.

The West African nation paid 24.75 per cent yield on a three-year bond arranged by book-builders in January.

The major commodities exporter is implementing a three-year aid programme with the International Monetary Fund to fix an economy dogged by budget deficits, inflation and a widening public debt.

Ghana's total public debt is around 70 per cent of GDP while consumer inflation stood at 19.2% in March, up from 18.5 per cent the month before. The yield on Ghana's weekly benchmark 91-day Treasury bill was 22.8017 per cent last Friday.