Government to issue Ghs 21 billion debt in Q4 2021
Government of Ghana (GoG) per its Q4 2021 Issuance Calendar is planning to issue a total amount of Ghs 21,170 million in fresh domestic debt issuance for the fourth quarter of 2021.
Of the total debt to be issued for Q4 2021, Ghs 20,129 million is to rollover maturities with the remaining Ghs 1,040 million being fresh issuance to meet government’s financing requirements.
The majority of the funds to be mobilized will come from the 91-day Treasury bill, the government will borrow as much as Ghs 10.8 billion of the 91-day T-bills during the period which is lower than the previous quarter.
It will be followed by the 3-year bond in which a total of Ghs 2.3 billion will be mobilized. Ghs 1.97 billion is however expected to be raised from 182-day Treasury bill.
With regards to the 6-year bond, some Ghs 1.8 billion is expected to be raised with Ghs 1.2 billion also mobilized from a 10-year bond to be issued in the month of November 2021.
The 2-year and 7-year bonds are expected to raise Ghs 750 million each.
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Per the calendar, the 91-day and 182-day will be issued weekly, the 364-day bill through bi-weekly and the securities of 2-year up to 10-year will be issued through the book-building method.
Government says it expects the 4th quarter of 2021 calendar will meet the requirements of market participants, assuring all stakeholders and the public that it continues to strive for greater predictability and transparency in the domestic bond market.
Ghana’s total public debt stock went by ¢3.5 billion in two months to hit ¢335.9 billion ($57.9 billion) at the end of July 2021, the Bank of Ghana Summary of Economic and Financial Data revealed.
This was equivalent to 76.4% of Gross Domestic Product.
However, the rate of increase has slowed down, compared to the ¢27.8 billion fresh funds added in April and May 2021.
The government had indicated in the Issuance Calendar in July 2021 that its borrowing will slow down in the third quarter of this year [July 2021 to September 2021] as it’s expected to borrow less than a billion cedi for the entire three months.
