Government was able to raise 3.4 billion cedis as at Friday, October 27, 2017.

As a result, the managers of the bond have announced an extension of the auction for the 10 year bond by one more week.

The 3.4 billion cedis so far raised, represents about 57 percent of the 6 billion cedis needed.

But it is worth noting that, more than seventy percent or 2.5 billion cedis of the amount, was realized from the 7-year bond issued.

The 10 year bond, attracted 902 million cedis, far less than the 3.6 billion cedis target.

Like earlier prediction by Economist, Dr. Lord Mensah, Citi Business News understands government will be paying 19 percent interest on the 2.4 billion cedis.

For Economist, Dr. Eric Osei Assibey, the rate may just be realistic.

“The fact that this bond didn’t have any kind of Sovereign guarantee, there’s some amount of risk that investors associate with this kind of bond. Therefore I think 19 percent is quite fair, and because it is also a long-term bond, and there is so much uncertainty around it, you would expect that investors will definitely go in for a higher cost,” he stated.

Meanwhile, managers of the bond have extended auctioning for the 10-year bond for seven more days.

The auction is now expected to close on Friday, November 3^rd, 2017, and it is unclear what prompted this move this time around.

But it appears that investors requested for an extension due to the nature of not being a Sovereign bond.

Dr. Osei Assibey also shared his expectation after the close of bids on Friday, November 3^rd.

“It could just be around the figure expected, so let’s give some plus or minus to that…the confidence level over the last couple of months has increased by the fact that the micro economic indicators are on track, and also having the IMF coming in to back the government’s policies and others.”

Analysts are however optimistic that, the eventual completion of the process should turn around the fortunes of the various State Owned Enterprises, whose operations have been affected by the accumulated debts.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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The 1994 World Cup-winning captain returns for what will be his second stint in charge of the Selecao, having spent four years at the helm between 2006-2010.

He succeeds Luiz Felipe Scolari, who left the post after failing to claim Brazil’s first World Cup on home soil following a humbling 7-1 defeat to Germany in the semi-finals.

In Dunga’s previous spell in charge of his country, he won 42 and lost just six of his 60 games, guiding them to the Copa America 2007 and Confederations Cup 2009 titles, but was criticised for his pragmatic approach.

The 50-year-old was fired from what was his first senior coaching role in 2010 after suffering a World Cup quarter-final defeat to the Netherlands.

Dunga’s only other experience in the dugout came at Brazilian club Internacional last year, but he lasted less than 12 months before being dismissed after suffering four straight league defeats.

His first Brazil squad will be announced in late August ahead of the Selecao’s Gillette Brasil Global Tour friendly fixtures with Colombia and Ecuador in the United States.

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Source: Goal.com

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