Finance and Economic Planning Minister, Kwadwo Baah-Wiredu has stated that government’s aim of raising $50 million bond for landmark infrastructural development in the country is part of efforts to move away from contracting loans. Mr. Baah-Wiredu said this yesterday at the launch of the Ghana Golden Jubilee Bond in Accra. He disclosed that the monies accrued will help offset some of the problems in terms of delay associated with conceptual loans from the international community. “In order for Ghanaians to enjoy full benefits of the initiative of the Golden Jubilee, monumental structures will be built in each of the regions from the proceeds,” he added. The issue, which is open to all Ghanaians including those in the diaspora to be part of the country’s development, was initially scheduled to be rolled out in March, 2007. Being a retail bond, coupled with government’s intention to create an opportunity for all to share in the pride of the development drive on the occasion of the nation’s 50th anniversary, sales of the bond will cover the whole country and beyond. Additionally, it requires the assistance of banks, rural banks and other non-bank financial institutions across and outside the country. The bond is a five-year instrument and as a retail bond, it will not be listed on the stock exchange. The Jubilee Bond is linked to the GH¢75.6 million debut 5-year government of Ghana Bond that was issued in December last year to obtain a 47 per cent coupon rate. Financial analysts are confident the Jubilee Bond issue will deepen bond market activity. Presently, government’s 2-year, 3-year and 5-year bonds are listed on the Ghana Stock Exchange (GSE) for secondary activity. The listing of the 5-year bond in particular is meant to extend the yield curve above the three-year horizon to support the development of the secondary bonds market. The successful issue of the $750 million sovereign bond in the international market which has been listed on the London Stock Exchange was a watershed in the process of developing Ghana’s bonds economy, creating a means to diversify development finance. The issue has begun in earnest and ends in the first quarter of next year. Source: Daily Guide