Ghana will recruit more banks to market its domestic bonds as it seeks to boost demand and lower borrowing costs.
Currently, five financial institutions, known as book runners, arrange and price the country’s medium-term domestic debt. That will be expanded to a new structure known as the bond market specialist group, Deputy Minister of Finance Charles Adu Boahen said in response to Bloomberg’s questions. There will be incentives to lift demand and attract foreign investors.
The government is trying to arrest a decline in demand for Ghana’s debt from foreigners. Bond purchases by non-residents dropped to 48% in 2018, from 70% the previous year, according to central-bank data.
In January, the share dropped to just 6.3%, according to data from the Central Securities Depository Ghana Ltd.
The amount of debt sold through the book-build system fell to 7.9 billion cedis ($1.5 billion) in 2018 from 15.7 billion cedis the year before, according to data compiled by Bloomberg.
“The objective is to provide more competition and efficiency,” Boahen said. “The group will be under much stricter rules and obligations.”
The revamp will bring to an end a process started in 2015 to lessen the central bank’s role in auctioning government bonds. The average weighted borrowing cost on government cedi debt declined to 16.5% last year from 17.4% in 2017, according to the Ministry of Finance.
Latest Stories
-
Trade Minister promotes Ghana’s industrialisation agenda to US investors
1 min -
COCOBOD intensifies crackdown on cocoa smuggling syndicates
9 mins -
Ejisu By-election: Don’t condemn EC officials before content of ‘bribe’ envelope is established- Dr Serebour Quaicoe
39 mins -
Ghana’s first Kente Culture Story Documentary Film takes centre stage abroad
43 mins -
10 AI tools to enhance your school, personal or work life
1 hour -
WAEC reacts to private schools’ threat to boycott BECE, WASSCE over exorbitant charges
1 hour -
Reception given Bawumia in the Eastern region depicts victory – Jeff Konadu
1 hour -
GPL: ‘Going to Manhyia was good for the team’ – Ogum on Kotoko’s rejuvenated form
1 hour -
Ejisu by-election: NPP MP for Kwadaso, Kingsley Nyarko fingered in alleged electoral malpractice
2 hours -
Court instructs Anas to testify in person unmasked against Nyantakyi or case will be dismissed
2 hours -
Ghana takes on 7 other countries in a battle for best indigenous cuisine in Africa
2 hours -
Seidu Rafiwu finishes four-day walk-a-thon from Techiman to Accra
2 hours -
NPA increases price floor for petrol to GH¢13.63; diesel unchanged at GH¢13.07
2 hours -
How I lost my ring on my wedding day
2 hours -
Ejisu by-election: EC withdraws 2 temporary staff over suspected bribery caught on camera
2 hours