Government secured a little above ¢1.08 billion from the sale of a 2-year bond issued on 10th February, 2022.
This came few days after credit ratings agency, Moody’s downgraded Ghana’s credit worthiness into junk status.
According to the auctioning results, government accepted all bids worth ¢1.082 billion received from the investors – both foreign and non-resident investors.
The yield or interest yield of the 2-year debt instrument was however 19.75%. This was at the upper band of the Initial Pricing Guidance.
However, analysts, believe the cost of the bond was favourable.
It is unclear whether the recent downgraded of Ghana’s credit rating by Moody’s and Fitch affected the sale of the debt instrument.
But based on the trading results, the impact might have not been significant.
Proceeds from the sale of the bond will be used largely to finance maturing debt.
Absa, Black Star Advisors, Cal Bank, Databank, Ecobank Fidelity, GCB Bank, IC Securities and Stanbic Bank were joint book runners.
Mixed developments on medium to long term treasury market
In December 2021, rates on the 2-year and 5-year bonds increased to 19.75% and 21.00% respectively, from 18.50% and 19.85% respectively, while rates on the 3-year, 6-year, 7-year and 10-year bonds broadly declined.
The rates on the 15-year and 20-year bonds, however, remained unchanged at 19.75% and 20.20% respectively, over the same comparative period.
Latest Stories
-
Gold Fields Ghana Foundation challenges graduates to maximize benefits of community apprenticeship programme
34 mins -
GBC accuses Deputy Information Minister Sylvester Tetteh of demolishing its bungalow illegally
46 mins -
Boost for education as government commissions 80 projects
57 mins -
NAPO commissions library to honour Atta-Mills’ memory
1 hour -
OmniBSIC Bank champions health and wellness with thriving community walk
1 hour -
Kora Wearables unveils Neo: The Ultimate Smartwatch for Ghana’s tech-savvy and health-conscious users
1 hour -
NDC supports Dampare’s ‘no guns at polling stations’ directive
1 hour -
Police officer interdicted after video of assault goes viral
2 hours -
KNUST’s Prof. Reginald Annan named first African recipient of World Cancer Research Fund
2 hours -
George Twum-Barimah-Adu pledges inclusive cabinet with Minority and Majority leaders
2 hours -
Labourer jailed 5 years for inflicting cutlass wounds on businessman
2 hours -
Parliament urged to fast-track passage of Road Traffic Amendment Bill
2 hours -
Mr Daniel Kofi Asante aka Electrician
2 hours -
Minerals Commission, Solidaridad unveils forum to tackle child labour in mining sector
2 hours -
Election 2024: Engagement with security services productive – NDC
3 hours