1. INVITATION OF BIDS
The Bank of Ghana invites bids for the re-issue of the above instrument on behalf of the Government of Ghana through an auction process.
2. BOND FEATURES
| Issuer: | Government of Ghana |
|
Initial Issued date: |
August 1, 2011 |
| Maturity date: |
July 25, 2016 |
|
Coupon rate: |
14.25% |
| Interest Payment Periods: | January and July, beginning 30th January, 2012. |
| Amount Issued: | GH¢305.335 million |
| ISIN: | GHGGOG025438 |
| Denomination: | Ghana Cedi |
| 3. TERMS OF RE-ISSUE | |
| Amount: | GH¢200 million |
| Purpose: | To partly finance the redemption of a 5-Year Fixed Rate Bond maturing in December, 2011, and the construction of (4) four major road projects. |
|
Issue Method: |
Through an auction to be held on 8th December, 2011. |
|
Participation: |
The 5-year bond shall be available to both resident and non-resident investors. |
|
Type of Auction: |
Multiple Price Auction |
|
Minimum Bid: |
GH¢500,000 and multiples of GH¢10,000 thereafter. |
|
Application Methods: |
Bids may be made on either competitive or noncompetitive basis through Primary Dealers only. Primary Dealers may also submit bids on their own behalf. Bids received will not be revocable. |
|
Closing Date: |
Bids must be electronically delivered to the Central Securities Depository Auction Module not later than 1.00 p.m. on 8th December, 2011 |
|
Allocation of Bonds: |
The Bank of Ghana reserves the right to reject any or part of any competitive or non-competitive bid. Subject to this, competitive bids will be ranked in descending order of price bid. Bond will be sold to applicants whose competitive bids are at or above the lowest price at which the Bank of Ghana decides. Applicants whose competitive bids are accepted will purchase securities at their prices. Competitive bids which are accepted and which are made at price above the lowest price will be satisfied in full. Competitive bids which are accepted and which are made at the lowest quoted price may be satisfied in part only. The non-competitive sale price will be equal to the average of the prices at which competitive bids have been accepted, the average being weighted by reference to the amount accepted at each price. |
|
Settlement: |
Settlement shall take place on 12th December, 2011. Applicants whose competitive bids are accepted will purchase the Bond at their quoted prices (plus accrued interest). Non-competitive bids which are accepted will be accepted in full at the non-competitive sale price (plus accrued interest). |
|
Interest Payment: |
The amount of interest paid on every coupon payment date shall be equal to the principal amount at the coupon rate for half-year. |
|
Registrar: |
The Register will be maintained on a book-entry system on the Central Securities Depository and, therefore, no certificates will be issued. |
|
Redemption: |
The Bond shall be redeemed by the issuer on the maturity date, which shall be 25th July, 2016. Such redemption shall be at par. |
Withholding Tax: |
The Internal Revenue Act 2000 requires the Bank to withhold tax in respect of interest payments to resident corporations holding Bonds on their own account at the rate of 10% of the gross amount of the payment. Interest paid to a non-resident holder (individual and institution) on bonds issued by the Government of Ghana is exempt from tax. |
(Sgd.)
THOMAS TETTEY
FOR: THE SECRETARY
November 18, 2011.
