Finance Ministry announce issuance of 5 year cedi denominated bond
A five-year cedi denominated bond is set to be issued by government via the Finance Ministry on Monday, March 14, 2022.
The senior unsecured bond set to mature in March 2027 is opened to both resident and non-resident investors.
The Ministry announcing the issuance of the bond, failed to disclose the yield or interest rate at which the bond will be issued.
However, given the recent trend of the country’s bond yields, one can safely say the debt instrument will be issued at a yield of 21%.
Funds expected to be raised from the issuance was not disclosed by the Ministry.
Bid offers for the bond the Finance Ministry has revealed, begins at 9am on Wednesday, March 9, 2022 and ends on Thursday, March 10, 2022 at 5pm.
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Bond market specialists facilitating the issuance of the 5-year bond are Absa, Databank, Cal Bank, Ecobank, GCB, IC Securities, Stanbic and Black Star.
In recent times, investors have been demanding higher yields on Ghana’s bonds because of the perceived risks in the economy.
The high interest rate on bonds comes on the back of concerns raised by investors about the fiscal outlook of the Ghanaian economy which is characterized by rising debt, arrears and fiscal deficits.
Analysts say both the domestic and external markets have tighten in recent times as global liquidity continues to dry up. Coupled with the fiscal challenges, this is being reflected in higher yields on the market.
202203 March 2022 5 Year GHS Tbond Issuance Announcement by Fuaad Dodoo on Scribd
