Government’s three year bond which was sold to investors failed to raise the required amount.
The Bank of Ghana (BoG) was looking forward to securing GH¢630 million worth of bids from investors but actually got GH¢572 million.
However, the BoG took just GH¢502.10 million.
Government will also be paying an interest of 23.47 percent.
For some analysts, the interest rate being paid to investors might be interesting because in just about a month, the cost of the three year bond has gone up by almost 1 percent from 22.49 earlier this year to 23.47 percent.
Some market watchers were looking forward to this bond results to gauge government’s projection about the economy being on the path to recovery.
The level of investor interest and interest that will be paid on this bond go a long way to substantiate the investor confidence in the economy.
In April Government issued a three year bond which was also seriously undersubscribed.
It was hoping to raise some GH¢400 million; however government just got GH¢168 million.
But Bank of Ghana, which sold the bonds for the state, took GH¢103 million from investors and paid an interest 22.49 percent.
Government is expected to use proceeds of the bonds to refinance debts that are maturing. According to persons close to the sale of bond, almost all of the bonds sold were taken up by offshore investors.
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