Government Debt Issuance: Strong demand slightly surpasses GHS 2.6bn target
Government of witnessed an impressive display of investor confidence as its recent issuance of short-term debt instruments garnered overwhelming demand from the market. The 91-day, 182-day, and 364-day Treasury Bills were oversubscribed by a substantial GHS 44 million, highlighting investors’ appetite for the government’s offerings.
In a remarkable achievement, the government successfully raised a total of GHS 2,698 million from primary dealers, surpassing its initial target of GHS 2,654 million. Such robust investor interest reflects the growing confidence in the country’s economic prospects and the government’s ability to meet its financial obligations.
The 91-day Treasury Bill emerged as the focal point of the issuance, attracting bids worth GHS 1,785 million. The government, recognizing the strong demand, chose to accept all the bids tendered for this short-term instrument, signaling investors’ preference for the security and credibility it offers.
Similarly, the 182-day Treasury Bill was met with considerable enthusiasm, as it received bids worth GHS 357 million. The government, adhering to its prudent debt management strategy, accepted GHS 356 million of these bids, demonstrating its commitment to maintaining a balanced approach to financing.
Investors also displayed keen interest in the 364-day Treasury Bill, with bids amounting to GHS 557 million. In line with its objective of meeting market demand, the government accepted all the bids tendered for this particular instrument.
Primary dealers vying for these Treasury Bills offered varying interest rates, with the highest rates recorded as 24.9% for the 91-day, 26.8% for the 182-day, and 30.04% for the 364-day Treasury Bill. These rates reflect the dynamic interplay of market forces and investors’ perceptions of risk and return.
With the successful conclusion of this debt issuance, the government remains resolute in its efforts to secure additional funding for its short-term financing needs. On August 4, 2023, the government plans to launch another issuance of 91-day, 182-day, and 364-day Treasury Bills, aiming to secure GHS 2,282 million in fresh funding. This move underscores the government’s proactive approach to managing its financial obligations and leveraging favorable market conditions to its advantage.
As the economy continues on its path to recovery, investors are closely monitoring Government’s fiscal policies and economic developments, and the resounding demand for Treasury Bills is a clear signal of confidence in the government’s financial management and economic stewardship.
