The Government of Ghana (GoG) lost a little over Ghs 676 million in its 3-year-bond auctioned on Thursday.
Government accepted all Ghs 823 million bids issued for the cedi-denominated bond despite expecting to have raised some Ghs 1.5 billion.
Low subscription of the debt instrument is as a result of tightening market conditions caused by the coronavirus pandemic.
Interest rate on the 3-year-bond expected to mature in 2023, is 19 per cent and will be paid semi-annually.
Since the emergence of the coronavirus pandemic, the government has been accepting all bids for bonds issued so far.
Government’s Ghs 1.5 billion target for the bond was to finance its fiscal operations.
Market Analysts claim there have been drastic reductions in foreign participation in the domestic market since the emergence of the Covid-19 pandemic because investors have adopted a risk averse position and are therefore asking for more interest on GoG securities because of the risk to the economy.
