Finance Minister Dr. Kwabena Duffuor is optimistic of a successful three-year bond issue today.
Government through the Bank of Ghana will issue a 500 million cedi bond, proceeds from which will be used to restructure short-term debt instruments that are maturing.
JOYBUSINESS has learnt proceeds from the bonds would also be used to pay off 91 and 182 day treasury bills to lengthen its maturity dates.
Dr. Duffuor told JOYBUSINESS with sound economic fundamentals, investors will obviously want to take a bite of every government paper issued.
“We put in place a very tight but very prudent macro-economic policy measures which are producing good results. Even though we are in election mood, the cedi is not only stabilizing but appreciating, inflation has been going down steadily…
“So there is a huge appetite for Ghanaian risk by both local and foreign investors because of the confidence the have in our economy…”
Dr. Duffuor however disagreed that previous bonds were heavily oversubscribed because of high returns given to investors.
This will be the fifth time this year government is issuing a cedi denominated bond. Its last bond issue in August was heavily over-subscribed.