Govt to pay 25.5 as interest on Thursday’s three year bond

Government is expected to pay 25.5 percent as interest on the three year bond sold yesterday.

The bond which was sold by the Bank of Ghana, got  419 million cedis worth of bids from investors, although  it wanted to raise 400 million Ghana cedis.

However, government just accepted 207 million Ghana cedis worth of bids by investors. 

The bond, was opened to offshore and local investors, it was the second in a series planned for this year and is meant partly to roll-over maturing debts and also to finance projects.

The 25.5 percent for yesterday’s three year bond is the highest in recent times after borrowing at around 23 percent for a similar bond issued  in February this year.

The development could mean that commercial banks might not be able to lend to individuals who want to borrow over a three year period below 25 percent

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