Gov’t latest 5-year domestic bond heavily oversubscribed

quist 08:24 - 24 June 2016

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In a statement released by the Bank of Ghana and copied to Pulse Business, government took a total of 811.04 million at a rate of 24.5% representing a 0.70% decrease on March’s 24.75%.

Government’s Thursday GHC500 million five-year domestic bond issue has been oversubscribed by GHC316 million and at a slightly depressed interest rate in relation to its last domestic bond issue in March.

Total bids tendered was GHC816.04 million, a boost in government’s aim to raise a total of 16.83 billion cedis in short and medium-term domestic securities in the third quarter of 2016 through what, Finance Minister, Seth Terkper calls a book building process.

For Thursday’s issue, international investors accounted for 61 percent of total patrons, arranged by book-builders comprising Barclays Bank Ghana, Stanbic Ghana and Strategic African Securities.

14.91 billion cedis of the total bond targets the third quarter of 2016 would be used to retire maturing debt and finance the budget.