Finance Ministry issues 2-year cedi denominated bond
Government, through the Finance Ministry has issued a two-year cedi denominated bond.
The senior unsecured bond set to mature in February 2024 was opened to both resident and non-resident investors.
The Bank of Ghana (BoG) announcing the issuance of the bond in a notice, failed to disclose the yield or interest rate at which the bond was issued.
However, given the current trend of the country’s bond yields, one can safely say the debt instrument was issued at a yield of 20%.
Bids offered for the bond, the notice by the BoG revealed, began at 9am on Wednesday February 9, 2022 and ends on Thursday, February 10, 2022 at 5pm.
Read: Banks, importers, others make bids worth $293m in BoG forex auction
Bond market specialists facilitating the issuance of the 2-year bond are Absa, Databank, Cal Bank, Ecobank, GCB, IC Securities, Stanbic and Black Star.
In recent times, investors have been demanding higher yields on Ghana’s bonds because of the perceived risks in the economy.
The high interest rate on bonds comes on the back of concerns raised by investors about the fiscal outlook of the Ghanaian economy which is characterized by rising debt, arrears and fiscal deficits.
Analysts say both the domestic and external markets have tighten in recent times as global liquidity continues to dry up. Coupled with the fiscal challenges, this is being reflected in higher yields on the market.
202202 Publication of February 2 Yr GHS Denominated Tbond Issuance by Fuaad Dodoo on Scribd
