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The three-year 500 million Ghana Cedi -domestic bond issued by the Bank of Ghana on Thursday January 7 on behalf of government has been under- subscribed.
While government wanted a total of 500 million Ghana Cedis, it was able to raise only 426 million Ghana Cedis by the end of the issuance of the bond in total offers.
Out of this, the Bank of Ghana took 373 million Ghana Cedis at an interest of 24.75 percent, something that has sparked concerns amongst analysts because the rate is higher than the country's last interest in the last domestic bond issue where government got a 23.85 percent.
Whereas some analysts thinks the situation suggests that investor confidence in the Ghanaian economy, others believe its as a result of the U.S interest rake hikes.
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But country director of investment firm, C-Nergy Ghana, Mike Cobblah in a conversation with Joy FM the under-subscription to timing.
He explained that most of the foreign investors are now returning from the holidays.
“This is just the first week of January, and most investors are still not at work yet, when you issue a bond at this time the interest from foreign investors might not be good.”