Economy of Ghana Gov’t to raise GH¢17.4 bn in third quarter

A statement issued by the Bank of Ghana indicated that the cash accumulated will be used to roll over maturities as well as to take care of government financing requirement.

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The government of Ghana is looking forward to raising 17.4 billion cedis in the third quarter of 2017 from the securities market.

A statement issued by the Bank of Ghana indicated that the cash accumulated will be used to roll over maturities as well as to take care of government financing requirement.

About 14 million cedis of the total is expected to be used to roll over maturities and the remaining GH¢3.2 billion as fresh issuance to meet government’s financing requirement.

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In the said quarter, a 2.6 billion cedi fifteen-year bond will be issued in August. Two five year bonds will also be issued, one to be issued in July and the other in August.

Two 3 year bonds, three 1 year and two 2 year bonds will also be issued.

The rest will be 91 and 182-day bills which will yield about 11 billion cedis.

The statement added that the 1-Year Note will be issued every two weeks through the primary auction, while the 91-day and 182-day will be issued every week.

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Settlements will be done on first and third Mondays of each month.

Meanwhile, the 2-year note will be issued every month through the primary auction, with settlement occurring on the second Mondays of each month.

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The book building method will be used to issue the 3 and 5-year bonds and settlement will occur on the last Monday of each month.

The 3-Year target in July 2017 will be issued through the reopening of the 3-Year Bond (coupon of 18.50%) maturing 1st June 2020.

The 15 year fixed bond in August this year will be structured bond to convert the existing 91-day treasury bills investment by the National Pensions Regulatory Authority (NPRA).

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