Bond battles & blues: The 20-year bond controversy

Bond battles & blues: The 20-year bond controversy
Source: Ghana | Philip Nanfuri | JoyBusiness
Date: 30-08-2019 Time: 11:08:38:am

Governments all over the world borrow both domestically and internationally. The government of Ghana is no exception to this. 
 
The Ministry of Finance in presenting the Budget indicates how much the government will wish to borrow in a given financial year. 
 
In every particular year, government issues what is called an issuance calendar quarterly. Currently, the Q3 issuance calendar is being used.


 
 It spelt out government will issue a 20-year bond with a total amount of GHC450 million.
 
A story by Bloomberg described the amount government raised as a flop as the government was only able to raise GHC 162 million. 
 
But the government through the Ministry of Finance disagreed and stated that the bond was not a flop arguing it was a shelf-offering. Simply, the total of GHC450 million was not going to be raised at a go but over time. 
 
So what was all the noise about? Does this put the matter to rest?
 
On the Business Edition of PM EXPRESS, Sampson Akligoh, Ag Director of the financial sector division, Ministry of Finance and Samuel Aidoo, Deputy Managing Director of Fidelity Bank Ghana helped us wade through the jargons and lexicons.

Watch video below: