Banking and Finance

Ghana accepts 5-year domestic bond worth over $200 million

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Ghana accepted GH¢967.5 million ($245.5 million) worth of bids for a five-year domestic bond issued on Thursday and will pay a fixed yield of 24.75 percent, transaction arrangers said on Thursday.

Total bids tendered at the sale, which was open to foreign investors, amounted to GH¢972.5 million, said the lead team consisting Barclays Bank, Stanbic Bank and the Accra-based Strategic African Securities.

Proceeds from the bond will be used to roll over maturing debt as the West African gold, cocoa and oil exporter seek to restructure its public debt.

Ghana's total public debt stood at $27.4 billion representing 66.4 percent of GDP by May. The government plans to issue a Eurobond of up to $1 billion this year to finance the government's budget.

The yield on Thursday's bond edged up compared to a similar transaction last month when Ghana sold GH¢811.04 million worth of bonds at a rate of 24.5 percent.

Ghana is implementing a three-year aid program with the International Monetary Fund to fix an economy dogged by deficits, high-interest rates and distressing public debt with inflation persistently above targets.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.