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Business News of Sunday, 7 March 2021
Source: Goldstreet Business
The Government of Ghana mobilized GH¢1.77 billion from the sale of the 5-year bond
The Government of Ghana mobilized GH¢1.77 billion from the sale of the 5-year bond at a favorable cost of 18.3%.
This comes after the government accepted all the bids from the investors, largely dominated by foreigners or non-resident investors.
Goldstreet Business understands all bids were submitted within the Initial Pricing Guidance of 17.8% to 18.4%.
However, the government capitalized on the strong demand to compress the final clearing yield or interest rate to 18.3%.
Importantly, this is the second consecutive time the Treasury is deploying this yield compression strategy during an offer, after the successful outcome of the 2-year offer in February 2020.
Goldstreet Business also leant that the total demand and uptake of the 5-year offer exceeded the calendar target by 26% and also the maturing 2-year note being refinanced by 167%.
The government has in recent times been successful with the issuance of the debt instrument, but the concern has been about the high amount it is borrowing.
As usual, Absa, Databank, Fidelity, IC Securities and Stanbic were the joint book runners.
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