Government is planning to raise GH¢11.1 billion in the first quarter of 2018, information from its Issuance Calendar for the first three months of this year has revealed.

According to the Calendar, the Finance Ministry is planning to raise almost GH¢9 billion for roll-over maturities. 

The remaining GH¢2.1 billion which is being described as fresh cash or borrowing will be used to meet government’s financing needs.  

A careful look at the Calendar shows that government actually borrowed less than what it took in the first quarter of 2017.

Government is planning to raise GH¢11.1 billion as against the GH¢17.4 billion raised in the same period for 2017. 

However, some analysts have attributed it to lower budget deficit of GH¢10.9 billion compared to GH¢12 billion in 2017. 

Some have argued that the decline has been influenced by the lower deficit for this year, compared to 2017.

Some analysts believe that this decline in the amount being borrowed together with the issuance of long-dated bonds and debt re-profiling could help reduce the public debts, which stands at GH¢139 billion as at September 2017. 

According to the Finance Ministry, the Calendar also takes into consideration government’s liability management programme, market developments (both domestic and international) and the Debt Management objective of lengthening the maturity profile of the public debt.

The 1-Year Note will be issued bi-weekly through the primary auction, with settlement occurring on first and third Mondays of each month.

However, a portion of the target for January will be issued into the market through re-opening of the existing 2-Year Note (ISIN-GHGGOG043944, 21% coupon) maturing 7th January 2019, in the third week, settling on January 15, 2018.

The 2-Year Note will be issued monthly through the primary auction, with settlement occurring on the second Monday of each month.

The 3-Year and 5-Year bonds will be issued through the book-building method and settlement on the last Monday of each month;

The Finance Ministry added that “consistent with the MTDS, we may announce tap-ins/reopening of existing instruments depending on market conditions.”

The calendar also showed that government planned to tap into the international capital market in the second quarter of this year, to possibly issue the GH¢1 billion Eurobond. 

Investment analyst, Mahama Idrissu is, however, pushing for some clarity on how government is planning to use the fresh GH¢2.1 billion being raised by managers of the economy.

He also wanted government to come clear on the expected interest that it would want to pay on these securities.