Ghana accepted 369.47 million cedis ($84.7 million) worth of bids for the country’s first five-year domestic bond issued on Thursday, January 26, 2017. Citi Business News understands total bids subscribed amounted to 420.14 million cedis.
The rate for the bond is 18.75 percent. The cash will be used rollover forecast maturities, meet government’s financing requirements and build buffers for liability management. Participation was open to both resident and foreign investors.
The five year bond forms part of the government’s 17.4 billion cedis ($4.1 billion) worth of domestic instruments to be issued between January and March.
Lead brokers for the issue were Barclays Bank Ghana, Stanbic Ghana and Strategic African Securities. The issue was conducted by the book building method on the Ghana Stock Exchange.
Government is expected to issue a 700 million cedi 3 year bond in February 2017.