Bond Issues Ignore Minority’s claims on bond auctions – Finance Ministry

In a statement issued by the Ministry of Finance it said that “the issuance was not shrouded in secrecy nor was it “cooked” for any particular investor”.

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

The Ministry of Finance has called on the general public to disregard the claims made by the minority in parliament on the recent $2.25 billion issued by the Bank of Ghana.

The Minority alleged that ninety-five percent of the bond was purchased by the very close friends of the Finance Minister.

The Minority Spokesperson on Finance Cassiel Ato Forson claimed that a non-executive director on the board of investment firm, Franklin Templeton that purchased a majority of the bonds is also the Chairman of the Enterprise Group; a company closely aligned with the private interests of the Finance Minister, Ken Ofori-Atta and the Attorney General, Gloria Akuffo.

READ ALSO: Submit your passport- EOCO tells Ibrahim Mahama

However, in their response, the Ministry said that “the issuance was not shrouded in secrecy nor was it “cooked” for any particular investor”.

“The Bookrunners, (Barclays, Stanbic and SAS), on behalf of the Ministry of Finance have been mandated since 2015 to issue these domestic bonds on a regular basis as per the debt issuance calendar which Ministry of Finance (MoF) puts out every quarter”.

“Also the book runners announce and publish every impending bond issue to the market, the week of issue and provide price guidance to the market. This particular bond issue was no different and was done in conformity with the established process. It was announced by the Book Runners to the market on March 30, via email and same published on MoF and Bank of Ghana (BoG) websites with settlement on April 3.”

READ ALSO: Kwaku Kwarteng dares minority to go to court

It also denied claims that Franklin Templeton was the only participant in the process. It added that there were over 25 other buyers including other foreign entities, who all brought in dollars to convert to cedis to buy the bonds.

“This bond issue, like all the others done prior could not have been designed to favour any single investor. The conventional processes for the issue of bonds using the book building approach were adhered to in this particular issuance. It is our understanding that the said investor engaged various market participants and other key institutions including the IMF before deciding to participate in the bonds. It is worth noting that local investors also participated”.

The said investor participated in the issuance like they have always done since 2006 through their local Primary Dealer, Barclays Bank and their local custodians, Standard Chartered Bank and Stanbic Bank.

READ ALSO: I wasn’t privy to $2.25bn bond issue – Gloria Akuffo

“To have obtained preferential treatment, all the above-mentioned institutions would have had to conspire to do so, a situation which is unfathomable.  The investor in question, FT, has held Government of Ghana bonds of up to USD 2 Billion prior to this transaction. Indeed FT has been buying and investing in government bonds since 2006,” it argued.

Parliamentary Approval

The statement insisted that like other domestic bonds issued under this bond program since 2015, it did not require the approval of Parliament.

“Approval was given under the initial application to Parliament in the 2015 Budget Statement and Economic Policy document, to run such a bond issuance program.  The Ministry of Finance has the mandate to fund the deficit as contained in the budget approved by Parliament through the issuance of debt instruments and to manage the countries debt stock”.

The statement added that the issuance has brought in a significant amount of foreign currency, which was converted into cedis to purchase the bond. This has also helped strengthen the value of the Cedi.

Stop taking collection in churches -TB Joshua to pastors

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos





Top Articles

1 Bank of Ghana Here are the banks with the best deposit rates in Ghanabullet
2 NPP Government Pension for cocoa farmers to be rolled out in 2018bullet
3 Mobile Money Staff of telcos are accomplices in mobile money fraud,...bullet
4 Feature MTN Mobile Money fraud, an inside job?bullet
5 Taxes In Ghana 3% VAT flat rate takes off in July 1bullet
6 Stanbic Bank Staff jailed 10 years for stealing GH¢297,000bullet
7 Interest Rate Here are the banks offering the cheapest car...bullet
8 Business Registration Online registrations beginsbullet
9 Ghana Cedi New GH¢5 note in circulationbullet
10 Newmont Ghana Partnering local suppliers to increase...bullet

Top Videos

1 Entrepreneurship Failure- How To Deal With It | StartUpSchoolbullet
2 Entrepreneurship How to be resourceful as an entrepreneurbullet

Business