Short-term debt instruments oversubscribed by GHS 75m as Gov’t raises GHS 2.27bn from primary dealers
The Ghanaian government experienced robust demand for its short-term debt instruments, as the recent issuance of 91-day, 182-day, and 364-day Treasury Bills saw significant oversubscription, surpassing its target by GHS 75 million.
The primary dealers demonstrated strong interest, raising a total of GHS 2,277 million, exceeding the government’s initial target of GHS 2,202 million. This positive response reflects investors’ confidence in the country’s fiscal stability and short-term investment opportunities.
The 91-day Treasury Bill attracted bids worth GHS 1,861 million, with the government accepting all bids, indicating the high demand for this short-term instrument. Similarly, the 182-day Treasury Bill received bids worth GHS 304 million, all of which were accepted by the government.
In the case of the 364-day Treasury Bill, bids worth GHS 112 million were submitted, and the government accepted all of them. This further highlights the appetite for government debt among investors.
The highest interest rates offered by investors for the Treasury Bills were 22.9% for the 91-day, 25.4% for the 182-day, and 29.2% for the 364-day Treasury Bills. These rates indicate the return expectations of investors and reflect market conditions and risk considerations.
Looking ahead, the government has announced plans for another issuance of 91-day and 182-day Treasury Bills scheduled for June 30, 2023. The objective is to raise GHS 2,913 million in fresh funding, ensuring sufficient liquidity to meet the government’s short-term financing requirements.
The overwhelming response to the recent Treasury Bill issuance underscores investors’ confidence in the government’s fiscal management and the attractiveness of short-term investments in the Ghanaian market. As the government continues to tap into the capital market to fund its operations, investors are eagerly anticipating future debt instrument issuances and opportunities to participate in the country’s growing economy.
