Government is expected to issue a second three-year bond for this year by March 7.
The GH¢400 million-bond, billed to be used to finance Ghana's maturing debts and government's budget support, will be issued through the Bank of Ghana (BoG), CITY & BUSINESS GUIDE has learnt.
In January this year, Government issued its first bond which was oversubscribed. The next bond issue by Government could take place in June but would be a 5-year one.
Government hopes to raise GH¢200 million in the June issue to pay previous debts that are maturing.
A calendar for Government Securities published on the website of the Bank of Ghana, stated this.
The central bank is hoping to raise GH¢8.5 billion for the second and third quarters of this year from the sale of government securities.
This should bring the total amount government wants to raise from the domestic market by September, this year to GH¢11.1 billion.
Treasury Bonds are debt instruments (securities) issued by the Government of Ghana and sold to individuals or companies to raise funds for a specified time at a fixed or variable interest rate.
They may range from medium-term to long-term securities of one year and above. The one year and two year securities are normally referred to as Notes while the three years and above are typically called bonds.
Notes and bonds normally make fixed interest payments bi-annually (i.e every six months) to the holder.
In the January bond issue effected by government, about 99 per cent of the bids came from foreign investors and the rest from firms and institutions, commercial banks and individuals.
Dr Kwabena Duffuor, former Minister of Finance and Economic Planning said: 'The 450 per cent over subscription is an indication of investor confidence in Ghana's economy. Government is committed to ensuring fiscal consolidation for the fifth year running.'
Last year, government issued six cedi denominated bonds, which was two five-year fixed rate bonds and four three-year fixed rate bonds, all of which were oversubscribed.
Source: Daily Guide
