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.