Government to issue $3.9 billion in bonds in first quarter of 2021

According to a report by Reuters.com 19.7 billion cedi would be used to roll over maturing bonds, while 2.6 billion is fresh issuance to meet the government’s financing requirements.

Ghana’s economy has been hard hit by the coronavirus pandemic which has curbed economic growth and widened its deficit.

The West African country is expected to tap international capital markets this year.

The calendar showed that the government plans to issue 91-day and 182-day treasury bills weekly, while 364-day treasury bills will be issued every two weeks.

It added that two- and seven-year debt will be issued through the book-building method.

Meanwhile, government’s Treasury Bill sale has been oversubscribed by over 30%.

According to data from the Bank of Ghana, the 91-day bill was highly patronized by investors.

The target for this auctioning was GH¢756 million, but the government secured a little over GH¢988 million.

For the 91-day T-Bill, the government mobilized a little over GH¢864 million cedis. The interest rate was 0.1% [14.08%] lower than the previous week sale [14.09%], indicating some cost savings for the government.

The government however mobilized GH¢ GH¢124 million at a yield of 14.14%

It is expected that the interest rate will go down further in the coming weeks.