Business News of Sat, 29 Jul 20176
Government issues 5-year bond
Government has issued a 5-year bond.
The bond is one of two five year bonds to be issued in the third quarter, 2017.
The second will be issued in August, 2017.
The bond was issued through the book building method and settlement will be done on Monday.
The book building process begun on Wednesday 26th July, 2017 with initial price guidance released on Tuesday 25th July, 2017.
The bond was open to resident and nonresident investors with each bond having a face value of one Ghana cedi.
The cash accrued will be used to rollover maturities as well as to take care of government financing requirement.
Minimum bids for the issue was pegged at 50 thousand Ghana cedis and multiples of one thousand cedis thereafter.
The bond will be listed on the Ghana Stock Exchange (GSE) and Barclays, SAS and Stanbic have been named as active joint book runners.
Government early this month announced that it is seeking to raise 17.4 billion cedis in the third quarter of this year from the securities market.
During the three month period, July to September, a 2.6 billion cedi fifteen year bond will be issued in August and two five year bonds, one to be issued in July and the other in August.
Two 3 year bonds, three 1 year and two 2 year bonds will also be issued.
The rest will be 91 and 182 day bills which will culminate into about 11 billion cedis.