Business News of Saturday, 29 July 2017
Government has raised a total of 1.49 billion cedis in a five-year bond at a coupon rate of 18.25 percent.
The bond was heavily oversubscribed as bids amounted to 1.7 billion cedis.
Per the calendar, government originally targeted 500 million Ghana cedis.
The transaction is said to have attracted very strong interest from a wide range of top-tier domestic and offshore credit investors and priced within guidance.
Some Analysts tell Citi Business News the coupon rate is appropriate for a bond with a tenor of 5 years.
The Joint Bookrunners were SAS Finance Group, Stanbic Bank and Barclays Bank.
Government early this month announced that it is seeking to raise 17.4 billion cedis in the third quarter of this year from the securities market.
During the three month period, July to September, a 2.6 billion cedi fifteen-year bond will be issued in August and two five year bonds, one to be issued in July and the other in August.
Two 3 year bonds, three 1 year and two 2 year bonds will also be issued.
The rest will be 91 and 182-day bills which will culminate into about 11 billion cedis.
Finance Minister to present budget review
Meanwhile, the Finance Ministry has stated it will not seek a supplementary budget even as it presents a midyear budget review to Parliament on Monday [July 31, 2017].
Per the constitution, the Finance Minister is expected to give an account of the performance of the economy before the commencement of the second half of the year.
The motion for Parliament to approve the mid-year review of the budget has been scheduled for Monday, July 31.
Finance Minister, Ken Ofori-Atta is expected to among others give an assessment of how the economy fared in terms of revenue and expenditure projections for the first half of the year.
He may also if necessary, announce reviews to some targets set in the 2017 budget in February this year.
Even though this review has in some instances be associated with request for budget surpluses, sources at the Ministry tell Citi Business News there will not be a request for such this time round.