Gov’t re-opens 5yr dollar bond; issues 3yr cedi bond
Government, has reopened its 5 year dollar denominated bond issued on November 19, 2021.
The senior unsecured dollar denominated bond issued last year, has a maturity term of 5 years and is expected to mature on November 19, 2026.
The reopening or tap issue of the dollar bond by government, is due to the outstanding amount of $264m to be issued.
A tap issue is a procedure that allows borrowers to sell bonds or other short-term debt instruments from past issues. The bonds are issued at their original face value, maturity, and coupon rate but are sold at the current market price.
According to the Finance Ministry, the dollar bond issued at a coupon rate of 600 basis points (6%), is opened to resident and non-resident Ghanaian investors.
Bid offers for the bond begins 9am and ends at 5pm on Thursday, July 21, 2022.
In addition to the tap issue of the dollar bond, is the issuance of a three (3) year cedi bond by the government.
The cedi bond, the Finance Ministry notes, will be used as rollover for a maturing 5yr cedi-denominated bond.
The senior unsecured cedi bond is expected to mature in July 2025.
Just like the dollar bond, the cedi bond the Ministry notes, is also opened to both resident and non-resident Ghanaian investors.
Bond market specialists facilitating the issuance of the three-year and 5-year bonds are Absa, Databank, CAL Bank, Ecobank, Fidelity, GCB, Black Star, IC Securities and Stanbic.