T-bills auction target exceeded by 16.8%
An auction target of Ghs 1,101 million in the issuance of 91, 182, and 364 days treasury bills was exceeded by Ghs 185 million (16.8 percent).
Government, through the Finance Ministry against its Ghs 1,101 million targets raised some Ghs 1,286 million at the end of the Tender 1758 Government of Ghana (GoG) securities auction held on Friday, August 6, 2021.
The issuance of the Ghs 1,101 million targeted 91, 182, and 364 days treasury bills which the government has surpassed by Ghs 185 million more, was earlier reported by Norvanreports.
As noted in that report, the issuance of the Ghs 1,101 million targeted 91, 182, and 364 days treasury bills followed the issuance of a 2-year unsecured bond and 91 and 182 days treasury bills which was also oversubscribed by investors but saw government only accept Ghs 1.53 billion and Ghs 630 million respectively from the two debt securities.
The 2 year unsecured bond was auctioned at an interest or coupon rate of 16.7 percent per annum, with the 91 and 182 days being auctioned at 12.1 and 12.4 percent respectively.
Auction results for Tender 1758 made available by the Bank of Ghana (BoG), reveal bids submitted by investors for the 91 and 182 days T-bills issued at a discount rate of 12.1 percent and 12.4 percent were Ghs 1,127 million and Ghs 124 million respectively.
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Bids however accepted by the Finance Ministry were Ghs 1,049 million and Ghs 55 million respectively.
For the 364 days T-bills, total bids tendered amounted to Ghs 403 million out of which the government accepted Ghs 182 million – Ghs 221 million less the bids made by investors.
The 364 days T-bills was auctioned at a discount rate of 13.7 percent.
The over-subscription of the government’s short-term debt securities is attributable to the ever-increasing appetite for government securities by institutional investors particularly banks due to the relatively less risky nature of government securities.
It can also be attributed to the easing of liquidity on the interbank market.
On the back of a successful issuance, the government will once again be looking to raise some Ghs 1,161 million on the domestic debt market with the auction of 91, 182 and 364 days T-bills.
It is expected that government will once again exceed its target of Ghs 1,161 million for the T-bills issuance.
Details of auction results:
Auctresults-1758 by Fuaad Dodoo on Scribd
