The Bank of Ghana (BoG) will today 22nd October, 2015 issue a 1.5 billion cedi 3 year fixed rate bond.
[contextly_sidebar id=”uXGccrKGlj5NL6QEO6CwGTMXjfmWRtmV”]The auction comes a couple of days after government issued a 1 billion dollar Eurobond at a coupon rate of 10.75 percent.
The instrument which is Ghana cedi denominated, will be issued at par.
The bond will bear a coupon rate equal to the highest competitive bid accepted at the auction for the security.
Proceeds from the bond will be used to restructure Government of Ghana debt and for maturity settlement.
The 3 year fixed rate bond will be available to both resident and non-resident investors and will be listed o the Ghana Stock Exchange (GSE) for secondary market trading both at the floor of the Exchange or over the counter.
Meanwhile the Group CEO of Ideal Finance, Dr Nii Kotei Dzani has warned the auctioning of today’s bond will expose the economy to further risks.
According to Dr. Nii Kotei Dzani government must as a matter of urgency desist from borrowing from the domestic market as that has contributed to the high unemployment in the country.
Speaking to Citi Business News Dr Nii Kotei Dzani said the government should rather concentrate on increasing revenue.
By: Vivian Kai Lokko/citifmonline.com/Ghana