The Ministry of Finance has announced it has successfully issued a second 5-year Bond through the book-building approach on 3rd March 2016.
This is in accordance with the implementation of the new debt management strategy outlined in the 2016 Budget Statement and Economic Policy of Government.
There was a total of 76 bids tendered with a face value of ¢776.44 million, out of which ¢746.44 million was accepted.
This was contained in a press release from the Finance Ministry Tuesday.
Below is the statement:
PRESS RELEASE
FOR IMMEDIATE RELEASE
Monday 14th March 2016.
GHANA ISSUES 5-YEAR DOMESTIC BOND
In accordance with the implementation of the new debt management strategy outlined in the 2016 Budget Statement and Economic Policy of Government, the Republic of Ghana successfully, issued a second 5-year Bond through the book-building approach on 3rd March 2016.
2. A total of 76 bids were tendered with a face value of ¢776.44 million, out of which ¢746.44 million was accepted. Offshore investors took up 67% of the total allotted bids, with price ranging from 23.50% to 25.75%.
3. Pricing was in line with the initial price guidance range of 23.50% to 25.75%. The closing price of 24.75% was tight at the lower end of the expected price range.
4. Part of the amount accepted will be used to settle the 3-Year Fixed Bond of ¢416.00 million maturing 7th March 2016 and the remaining amount of ¢330.44 million allocated to meet Government’s refinancing and capital expenditure needs as captured in the 2016 Budget.
5. The issuance of this bond gives further impetus to Government’s Medium Term Debt Management Strategy, which among others focuses on minimising and/or replacing expensive shorter-dated instruments with longer dated issuances. It also provides a positive boost to the development of our domestic debt market.
6. The successful issuance of the bond evidenced by the generally high subscription and the favorable pricing is a reflection of the returning confidence in the Ghanaian economy and further confirms the bright medium-term prospects. END
Signed
ISSUED BY THE PUBLIC RELATIONS UNIT
