Income Market: Gov’t to pay 112.1% interest on four debt instruments
Government, is expected to pay a cumulative interest rate of 112.1% interest rate on four debt instruments issued last week.
Government, last week issued the 91, 182, 364 day bills as well as a three (3) year cedi-denominated note.
From these issuances, the government raised a total of GHS 3.52bn in fresh debt.
In the issuance of the 91, 182 and 364 day treasury bills accepted a total amount of GHS 2.41bn exceeding its original auction target of GHS 1.94bn.
The extra GHS 1.12bn was from the issuance of the three year cedi-denominated note.
The treasury note government noted, will be used as rollover for a maturing 5 year cedi-denominated bond.
Bids tendered for the 91 and 182 day treasury bills were GHS 1.27bn and GHS 975m of which government accepted all the GHS 1.27bn in the case of the 91 day treasury bill but GHS 974m in the case of the 182 day treasury bill.
For the 364 day treasury bill, bids tendered by primary dealers, banks, pension funds and asset management companies amounted to GHS 162m of which the government accepted GHS 158m.
The 91, 182, 364 day bill and 3-year cedi note debt instruments were issued at increased rates of 26.34%, 28.06%, 27.85% and 29.85% respectively.
Previously, interest rates on the aforementioned securities stood at 25.96%, 27.46%, 27.49% and 25% respectively.
| RESULTS OF LAST WEEK’S TREASURY BILL AUCTION | |||
| GOG Treasuries | Current | Previous | Change |
| 91-Day T-Bills | 26.34% | 25.96% | 0.38% |
| 182-Day T-Bills | 28.06% | 27.46% | 0.60% |
| 364-Day T-Bills | 27.85% | 27.49% | 0.36% |
| 3-Yr FXR Bond | 29.85% | 25.00% | 4.850% |
In the next auction, government will be seeking to raise some GHS 564m from the issuance of the 91 and 182 day bills possibly at the same interest rates of 26.34% and 28.06%.
Fixed Income Market Report_25.07.2022 by Fuaad Dodoo on Scribd
