Government accepted all bids for the 7-year cedi bond and the 3-year dollar bond issuance, according to auctioning results obtained from the Bank of Ghana.  

For the 7-year cedi bond, it raised ¢1.03 billion at a rate of 20.5%, whilst it got $388.9 million dollars for the 3-year dollar bond at an interest of 4.75%.

The results shows that there are still some uncertainties in the market with investors mindful of the covid-19 pandemic and other fiscal challenges in the Ghanaian economy.  

But analysts believe the pricing was within the current secondary market conditions.

As usual, majority of the funds would be used to repay maturing debts.

A book-building approach was adopted, indicating a pricing guideline was set before the bond was floated.

Absa, Databank, Fidelity, IC Securities, Stanbic were the joint book runners.

Since the emergence of the coronavirus pandemic, the government has been accepting all bids for bonds issued with the exception of the 2-year bond issued last month.

But in recent times, government has exceeded its Treasury bills sale target.  

November 5^th 2yr bond sale

Government accepted all bids for the 2-year bond issuance, raising GHS768 million on 5^th November.

This came after achieving more than half of its target from a similar bond issued last month.

However, the interest rate of the debt instrument remained same as last month’s auctioning, at 18.50%.

Analysts believe the interest rate was in line with current secondary market conditions.