Government secured ¢923.79 million from the latest issuance of the 5-year bond, auctioning results from the Bank of Ghana has revealed.
But that came at a higher cost of 21%.
The Government accepted all the bids of ¢923.79 million from the investors.
But the cost of the debt instrument was above the initial pricing guidance of 20.50%.
However, the rate was expected because investors had raised concerns about the fiscal outlook of the Ghanaian economy which is characterized by rising debt, arrears, amongst others.
On the flip side, the amount raised through the issuance of the 5-year bond exceeded the targeted amount set for the initial 7-year bond. This indicates that government exceeded its calendar target.
In recent times, investors have been demanding higher yield on Ghana’s bonds because of the perceived risks in the economy.
This has increased the interest rate of the maturity periods of the bond.
Analysts say both the domestic and external markets have tighten in recent times as global liquidity continues to dry up. Coupled with the fiscal challenges, this is being reflected in higher yields on the market.
Similarly, Central Banks of advanced economies have begun increasing their interest rates.
Overall, this is expected to translate into increased cost of private sector credit and consequently push cost of doing business up.
- ECG’s IT department resisting checks and balance moves by MD – Kwadwo Poku
- Scores of residents displaced, others trapped as Weija, Oblogo and Tetegu flood
- Mankessim murder: We didn’t commit crime with mason; he only dug hole for burying a victim – Chief
- Watch Daddy Lumba break down his hit song ‘Yene Wo Sere Kwa’
- NSMQ 2022 launched; fixtures for preliminary stage released
- ‘I have unfinished business with Black Stars’ – Milovan Rajevac
- Exclusive photos: Hundreds rendered homeless at Ashalaja
- I am still receiving threats from people on social media – KiDi
- Kwesi Yankah: Dear Ace Ankomah, the Birim River is gone
- The viral lynching that was to end Nigeria’s mob justice
- Nigeria ad regulator sues WhatsApp owner for $70m
- Ghana’s cocoa not banned – EU Ambassador
- Somalia drought: So weak from hunger she couldn’t bury her child
- Journalists urged to build regional cooperation in the fight against human trafficking
- Galamsey fight: Akufo-Addo won’t declare a state of emergency – Dr. Norman
- No firm without license will operate cybersecurity service from 2023 – Bawumia
- Our leaders are either complicit or incompetent – Ken Ashigbey on galamsey
- Agenda 111 is making up for a 60year gap in access to healthcare facilities across Ghana – Bawumia
- I’m not expecting much from Hearts of Oak in Africa because of inconsistency – Amankwa Mireku
- A state of emergency is long overdue – Kofi Bentil on galamsey
- Elon Musk Twitter deal back on in surprise U-turn
- Police on manhunt for man flogging toddler in viral video
- I’m a record-breaker, but they hate to project it – Zahara says of critics
- I am grateful to Asantehene and other chiefs for protecting Dr. Bawumia – Nayiri
- Nigerian child killed in ‘bullet-proof’ charm test