Pulse.com.gh logo
Go


Economy of Ghana Government’s 5-year bond oversubscribed

The bond was oversubscribed by 12.86 per cent with bids totalling GHS1.71 billion.

  • Published:

The government of Ghana has raised GHS1.49 billion through the sale of a five-year-bond.

The bond was oversubscribed by 12.86 per cent with bids totalling GHS1.71 billion.

Explainer: An Initial Public Offering (IPO) is oversubscribed when investor demand for the shares is more than the number of shares being issued.

According to Graphic Online, the bond was issued at a coupon rate of 8.25 per cent.

READ ALSO: Here are the legal mining sites gov't has deployed Military to protect

This current rate is an improvement over the interest charged on the country's first five-year bond. The maiden five-year-bond was issued in January at a rate of 8.75 per cent.

The rate is however within the pricing guideline of 17.25 per cent to 19 per cent that was issued ahead of the sale on July 28.

Stanbic Bank, Strategic Africa Securities (SAS) and Barclays were the joint book runners.

READ ALSO: Gov’t hasn’t borrowed money – Yaw Osafo Maafo

The bond was offered to both resident and non-resident investors.

The proceeds from the bond will be used to re-profile maturing debts of the country. Some of the money will also be used to fund infrastructure projects announced in the 2017 budget as well as other capital investments.

It will be listed on the Ghana Stock Exchange (GSE), where it will be traded until 2022 when it will mature.

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 Taxes In Ghana Don't rejoice; VAT has been hiked through ‘backdoor’ –...bullet
2 Kwabena Duffuor Official: Duffuor’s assets not being auctionedbullet
3 2018 Budget Review Prepare to pay 35% tax if you earn 10k and abovebullet
4 Investment banks in Ghana Top 5 investment banks in Ghana and why...bullet
5 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
6 Uche Ofodile Captain Planet’s wife heads MTN Liberiabullet
7 Nigeria To The World Ex-Nigerian Minister appointed to...bullet
8 Education Top 5 private high schools in Ghana according to...bullet
9 Salaries In 2018 Here are the dates public workers will...bullet
10 Ban On Fishing Gov’t isn’t wicked – Prof Boatengbullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
3 Support Finance minister buys Kantanka carbullet
4 Tech 6 reasons you should buy an iPhone SE instead of any of the...bullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Plane Crash Starbow suspends operations following plane crashbullet
7 Money Alert Meet Africa's richest womanbullet
8 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
9 New Phones Nokia MWC 2018 Event in 5 minutesbullet
10 Video We are determined to move Ghana beyond aid - Bawumiabullet

Business