Government has raised a total of 96.4 million dollars in its first local dollar denominated bond at a rate of 6.0 percent.
Total bids were 99.6 million dollars but government accepted 96.4 million dollars, above its original target of 50 million dollars.
By this, the cost of the bond is lower compared to government’s last Eurobond which was issued in September this year at a coupon rate of 9.25 percent.
Finance Minister Seth Terkper had earlier explained to Citi Business News that the move is aimed at raising funds to finance the budget at cheaper rate as well as refinance more expensive domestic debt.
The bond is part of government’s revised time table to raise 25 billion cedis from August to December this year through bonds and treasury bills.
The announcement was a revised issuance calendar indicating government’s plan of borrow from August to December.
The report showed that about Gh¢24 billion of the funds raised will be used to clear previous bonds issued that are maturing, with the remaining going to support fresh commitments.
As part of the plans, a three-year bond will also be issued in November to raise GH¢700 million while government hopes to issue its first 10-year local bond of GH¢200 million.
According to government, the calendar aims at continuing the objective of lengthening the maturity profile by reducing short-term borrowing.
It adds that the 3, 5, and 10-year issues will be done per the calendar through the book-building method with settlement on the last Mondays of each month.
By: Lawrence Segbefia/citibusinessnews.com/Ghana