Government raises GHÂ¢816 million in 5-year bond

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Government has been able to raise GH¢816 million from investors through its 5-year bond issued, Thursday. It was looking at raising between GH¢500 million to Gh¢1 billion from banks and institutional investors.

Government however accepted GH¢811 million worth of bids from investors at a rate of 24.5 percent. About 61 percent of the bids come from investors, while 39 percent came from local investors.

This is the second time this year that, government is using the book building approach is issue its bonds, instead of the previous, plan of using the Bank of Ghana.

The deal was arraigned by three financial institutions; Barclays, Stanbic and Finance House Strategic African securities.

The Finance Ministry is planning to use funds raised to finance debts that are maturing, and support some projects outlined in the budget.

Government is planning to raise about GH¢60 billion through bonds and treasury bills.

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