Fiscal Management Gov't to borrow GH¢25 billion

The revision was informed by the government revised fiscal projection for 2016.

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The government is planning to raise GHC25 billion through bonds and treasury bills for the rest of this year.

This was contained in a revised issuance calendar for August to December 2016.

The revision was informed by the government revised fiscal projection for 2016.

"Accordingly, this necessitated the revision of the issuance calendar to ensure consistency with Government cash flow forecast and market conditions," the revised calendar noted.

The amount raised will be used to rollover a forecast of maturities of GH¢23,853.56 million, with the remaining amount of GH¢1,416.44 million being fresh issuance to meet Government’s financing requirements.

"The calendar aims at continuing the objective of lengthening the maturity profile by reducing the short-term borrowing," the statement from the Finance Ministry said.

On average, an amount of GHȼ60 million will be issued every 2 weeks for the 1-Year Note, through the primary auction. Settlement will occur on first and third Mondays of each month.

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

The 3-, 5- and 10-year issues will be done per the calendar through the book-building method, settlement on the last Mondays of each month.

The amount of GH¢400.00 million for the 5-Year Bond in August 2016 will be raised through reopening of the existing 5-Year Bond (coupon of 24.75%) maturing 19th July 2021, with settlement on 29th August 2016.

The 5-Year Bond of GH¢1,000.00 million in September, 2016 may be issued partly in a United State (US$) Dollar equivalent Bond, with settlements on 12th and 26th September for the Cedi and US Dollar bonds, respectively.

These instruments may be reopened to create liquidity in the instrument.

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