GOVERNMENT'S REVISED ISSUANCE CALENDAR FOR AUGUST TO DECEMBER 2016
We make reference to our publication, informing you of Government's aggregate borrowing amount for the third quarter of 2016 of GH¢ 16,830.00 million out of which forecast maturities was GH¢ 14,910.61 million and net issuance of GH¢ 1,919.39 million.
As you may be aware, the Government revisesed its fiscal projections for 2016 in the mid-year review. Accordingly, this necessitated the revision of the issuance calendar to ensure consistency with Government cash flow forecast and market conditions.
Based on the above, a new issuance calendar for August to December 2016 was developed in line with the MTDS that specifies the aggregate amounts to be raised by instruments in the period. The Table 1 below provides a summary of the revised gross borrowing requirement for the period August to December, 2016.
Table 1: ISSUANCE CALENDAR FOR AUGUST-DECEMBER 2016
| Month | 91-Day | 182-Day | 1-Year | 2-Year | 3-Year | 5-Year | 7-Year | 10-Year | Total |
| Aug-16 | 3,480.00 | 1,710.00 | 120.00 | 300.00 | - | 400.00 | - | - | 6,010.00 |
| Sep-16 | 2,300.00 | 1,300.00 | 120.00 | 300.00 | - | 1,000.00 | - | - | 5,020.00 |
| Oct-16 | 3,010.00 | 1,320.00 | 120.00 | 300.00 | - | - | - | 200.00 | 4,950.00 |
| Nov-16 | 2,690.00 | 1,120.00 | 120.00 | 300.00 | 700.00 | - | - | - | 4,930.00 |
| Dec-16 | 2,440.00 | 1,500.00 | 120.00 | 300.00 | - | - | - | - | 4,360.00 |
| Total | 13,920.00 | 6,950.00 | 600.00 | 1,500.00 | 700.00 | 1,400.00 | - | 200.00 | 25,270.00 |
Please note that for the period, Government plans to issue an amount of GH¢25,270.00 million to rollover a forecast of maturities of GH¢23,853.56 million, with the remaining amount of GH¢1,416.44 million being a fresh issuance to meet Government's financing requirements.
Per the calendar
The calendar aims at continuing the objective of lengthening the maturity profile by reducing the short-term borrowing.
On average, the 91-day and 182-day will be issued weekly.
On average, an amount of GH¢60 million will be issued every 2 weeks for the 1-Year Note, through the primary auction. Settlement will occur on first and third Mondays of each month.
The 2-Year Note will be issued monthly through the primary auction, with settlement occurring on second Mondays of each month.
The 3-year and 5 and 10-year issues will be done per the calendar through the book-building method, settlement on the last Mondays of each month.
The amount of GH¢400.00 million for the 5-Year Bond in August 2016 will be raised through reopening of the existiing 5-Year Bond (coupon of 24.75%) maturing 19th July 2021, with settlement on 29th August 2016.
The 5-Year Bond of GH¢1,000.00 million in September, 2016 may be issued partly in a United State (US$) Dollar equivalent Bond, with settlements on 12th and 26th September for the Cedi and US Dollar bonds, respectively.
These instruments may be reopened to create liquidity in the instrument.
We believe that the more accurate detailed monthly borrowing plan, presented well in advance, should meet the requirements of market participants as it will ensure greater predictability and transparency.
Source:Ministry of Finance
