For the first time in recent bond sales, the Government of Ghana achieved more than half of its target from the 2-year bond issuance yesterday.

According to the trading results, government raised GHS1.53 billion cedis as against a target of one billion cedis.

The interest rate or yield of 18.50 percent was also in line with the secondary market levels.

 Joy Business learnt majority of the funds would be used to settle maturing debt, whilst the remaining will be used to support government’s financing.

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

Government had also exceeded its weekly Treasury bills sale last Friday, the first time in several weeks.  

Last bond sale

During the sale of the 3-year bond last month, the Government of Ghana accepted all the GHS823.64 million bids.

The interest rate of the debt instrument which would be paid semi-annually till maturity was 19.0%.

Since the emergence of the coronavirus pandemic, the government has been accepting all bids for bonds issued so far.