Ghana accepts $89 million of 3-year cedi bond

Ghana has accepted 393.6 million cedis ($88.9 mln) worth of bids for an oversubscribed three-year domestic bond sold on Friday at a yield of 18.5 percent, Reuters has reported, quoting the central bank.

Total bids for the bond, opened to foreign investors, were 498.3 million cedis. The target for the issue was 300 million, the report said.

The government last week said it is looking forward to raising 17.4 billion cedis in the third quarter of 2017 from the securities market.
A statement issued by the Bank of Ghana indicated that the cash accumulated will be used to roll over maturities as well as to take care of government financing requirement.

About 14 million cedis of the total is expected to be used to roll over maturities and the remaining GH¢3.2 billion as fresh issuance to meet government’s financing requirement.

In the said quarter, a 2.6 billion cedi fifteen-year bond will be issued in August. Two five year bonds will also be issued, one to be issued in July and the other in August.