Government has accepted 811.04 million cedis ($208 million) worth of bids for a five-year domestic bond and will pay a yield of 24.5 percent, slightly lower than the yield at the previous issue, the Bank of Ghana has announced.
According to the central bank, total bids tendered at the sale, which was open to foreign investors, amounted to 816.04 million cedis.
Government paid a yield of 24.75 percent on a similar transaction in March.
Finance Minister, Mr. Seth Terkper had earlier stated that government will use cheaper sources of funding to support the 2016 budget and restructure the country’s heavy public debt.
Offshore investors accounted for 61 percent of sales of the bond, which was arranged by book-builders comprising Barclays Bank Ghana, Stanbic Ghana and Strategic African Securities.
The government plans to issue a total of 16.83 billion cedis in short- and medium-term domestic securities in the third quarter.
Of this amount, 14.91 billion cedis would be used to roll over maturing debt.
There are also plans to issue a fifth Eurobond of up to $1 billion in coming weeks.
By: Lawrence Segbefia/citibusinessnews.com/Ghana