The government has announced that it will issue a five-year cedi denominated treasury bond on Thursday, to help the government to restructure its debt and maturity settlement. The bond, according to the government is in accordance with its securities for June 2016.
The instrument is to be issued at par, bearing a coupon rate equal to the highest competitive bid accepted at the auction for the security, and shall carry throughout the term of the security.
The bond, which has a minimum bid of 50,000 cedis and multiples of 1,000 cedis thereafter, shall have a face value of one cedi and shall be governed by the laws of Ghana. All successful bids will clear at a single clearing level Pro rata allocation.
The bond is opened to Resident Investors and Non-Resident Investors in Ghana and it will be listed on the Ghana Stock Exchange (GSE.
This current bond will have Barclays, SAS, Stanbic banks as the book runners.
The government earlier in the year has raised a little over 746 million cedis on the domestic market in a similar local bonds transaction in March for a yield of 24.75%.
The government has also issued other securities including a 3-year fixed rate bond through the auction process.
Meanwhile on January 7, 2016, the government failed to obtain a similar amount of 500 million cedis bond it issued to restructure its debt and maturity settlement. Total bids received at the time amounted some 426.23 million cedis.