Government Targets GH¢15.38bn Borrowing As 2027 DDEP Bond Buybacks Loom

Ghana’s government is targeting GH¢15.38 billion in net domestic financing for the final quarter of 2026, as it prepares to buy back bonds issued under the Domestic Debt Exchange Programme (DDEP) that are due to mature in 2027.

The borrowing target, contained in the government’s fourth-quarter issuance calendar, outlines its plans to raise funds between October and December. However, the calendar does not disclose how much will be set aside specifically for the planned bond buybacks.

According to the government, the GH¢15.38 billion target reflects projected domestic debt maturities and the outstanding net domestic financing requirements under the 2026 Mid-Year Fiscal Policy Review Framework.

The funds are expected to be raised through Treasury bills and medium- to long-term government securities, depending on prevailing market conditions.

Under the issuance programme, Treasury bills with maturities of 91, 182 and 364 days will be offered weekly through primary auctions. The government also plans to issue medium- to long-term securities to help establish benchmark bonds across the yield curve.

A key feature of the calendar is the planned liability management operation involving buybacks of DDEP bonds maturing in 2027. These transactions form part of the government’s broader debt management strategy as it prepares to meet its obligations.

The government also indicated that the planned buybacks, among other factors, have made the full operationalisation of the sinking fund necessary.

Although the financing target provides an indication of the government’s expected net borrowing, it should not be confused with the total value of securities it plans to issue during the quarter. Gross issuance can be higher because it may also cover the refinancing of maturing debt.

The issuance calendar is intended to give investors and other market participants greater visibility over the government’s domestic financing plans. Authorities say the programme is designed to improve transparency, strengthen predictability and support the development of Ghana’s domestic capital market.

“The calendar does not specify the amount earmarked for the planned bond buybacks,” the document stated.

The government reiterated its commitment to transparency, market development and investor confidence, while pledging to maintain an efficient and credible domestic government securities market.

The size of the planned DDEP bond buybacks, therefore, remains unspecified in the calendar, even as the government prepares for the final quarter’s financing operations.

Source: https://x.com/citi973/status/2113547544596795865?s=46

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