Government will tomorrow, Thursday 7th January, 2016 issue a 500 million cedi 3 year fixed rate bond.
[contextly_sidebar id=”qyrOAihmg6o6Lsqf0XbnaXEPg5C88IYd”]The bond which is cedi denominated will be the first bond issued by the bank of Ghana on behalf of government for 2016.
Proceeds from the bond is to be used to restructure government debt and also for maturity settlement.
The bond will be available to both resident and nonresident investors.
Withholding tax
Meanwhile the central bank has announced all payments in respect of the bonds by or on behalf of the Issuer shall be subject to withholding or deduction for, or on account of taxes, save that, in relation to nonresident Bondholders, the Issuer agrees to pay such additional amounts as may be necessary in order that the net amounts received by such non-resident bondholders after the withholding or deduction shall equal the respective amounts which would have been receivable in respect of the Bonds in the absence of the withholding or deduction.
The central bank adds that for the avoidance of doubt, this tax gross-up provision shall be for the benefit of non-resident Bondholders only.
The bond will also be listed on the Ghana Stock Exchange (GSE) for secondary market trading both at the floor of the Exchange or over the counter (OTC).
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By: Vivian Kai Lokko/citifmonline.com/Ghana