Ghana's Debt Gov’t latest 5-year domestic bond heavily oversubscribed

In a statement released by the Bank of Ghana and copied to Pulse Business, government took a total of 811.04 million at a rate of 24.5% representing a 0.70% decrease on March’s 24.75%.

  • Published:
Finance Minister, Seth Terkper play

Finance Minister, Seth Terkper

24/7 Live - Subscribe to the Pulse Newsletter!

Government’s Thursday GHC500 million five-year domestic bond issue has been oversubscribed by GHC316 million and at a slightly depressed interest rate in relation to its last domestic bond issue in March.

In a statement released by the Bank of Ghana and copied to Pulse Business, government took a total of 811.04 million at a rate of 24.5% representing a 0.70% decrease on March’s 24.75%.

Total bids tendered was GHC816.04 million, a boost in government’s aim to raise a total of 16.83 billion cedis in short and medium-term domestic securities in the third quarter of 2016 through what, Finance Minister, Seth Terkper calls a book building process.

READ MORE:Seth Terkper Latest domestic bond issue sign of 'distress' - economist

For Thursday’s issue, international investors accounted for 61 percent of total patrons, arranged by book-builders comprising Barclays Bank Ghana, Stanbic Ghana and Strategic African Securities.

14.91 billion cedis of the total bond targets the third quarter of 2016 would be used to retire maturing debt and finance the budget.