Government is optimistic its first local dollar denominated bond will be oversubscribed at a coupon rate of between 5.5 and 6.5 percent.<\/p>\n
The confidence, according to some financial advisors in government is due to enthusiasm expressed by investors in several meetings ahead of the issuing of the bond in some few days time.<\/p>\n
Already, Finance Minister, Seth Terkper had pointed out that government will achieve the target since many companies and individuals in the country hold dollar denominated accounts.<\/p>\n
Speaking on Citi FM\u2019s Consumer programme, Business Today, a representative of the Joint Book Runners for the bond, Kobla Nyaletey said that government will achieve the target due to the current condition of the exchange rate market.<\/p>\n
\u201cThis is the first [local dollar bond] transaction and indeed we\u2019ve met investors in a couple of meetings and we are very confident that we will be able to issue and get the target amount that the government is looking for in the indicated price range of 5.5 to 6.5 percent, \u201d he said.<\/p>\n
He explained that the bond will be restricted to residents and Ghanaians only.<\/p>\n
\u201cThis is a domestic Ghanaian market transaction open only to residents and Ghanaians, so non residents are not permitted to participate in this transaction,\u201d he noted.<\/p>\n
Govt targets 25.3bn by close of year<\/strong><\/p>\n Government \u00a0announced plans to issue an estimated 25.3 billion cedis between August and December this year.<\/p>\n Of the amount, 23.8 billion cedis is expected to be used to rollover forecast maturities with the remaining amount of 1.4 billion cedis being fresh issuance to meet government\u2019s financing requirements.<\/p>\n A statement from the Bank of Ghana said, the calendar is \u201cIn accordance with the Government\u2019s MTDS, the Bank of Ghana, and the Ministry of Finance\u201d.<\/p>\n It also indicated that government would consider accepting a reasonable amount above the target to build buffers which would be used to reduce borrowing.<\/p>\n Government explained at the time that it aims at continuing the objective of lengthening its debt maturity profile by reducing short-term borrowing, while issuing the 91 and the 182-day bonds weekly.<\/p>\n Payment plans\u00a0<\/strong><\/p>\n Per the new calendar, 60 million cedis will be issued every 2 weeks for the 1-Year Note, through the primary auction.<\/p>\n Settlement will occur on the first and third Mondays of each month.<\/p>\n Also, the 2-Year Note will be issued monthly through the primary auction with settlement occurring on the second Monday of each month.<\/p>\n While the 3, 5 and 10-Year issues will be done through the book-building method, with settlement on the last Monday of each month.<\/p>\n An amount of GH\u00a2400 million for the 5-Year Bond will be raised this month through reopening of the existing 5-year Bond at a coupon rate of 24.75% with maturity at 19th July 2021, and settlement on 29th August, 2016.<\/p>\n \u2013<\/p>\n By: Lawrence Segbefia\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" Government is optimistic its first local dollar denominated bond will be oversubscribed at a coupon rate of between 5.5 and 6.5 percent. The confidence, according to some financial advisors in government is due to enthusiasm expressed by investors in several meetings ahead of the issuing of the bond in some few days time. Already, Finance […]<\/p>\n","protected":false},"author":14,"featured_media":35554,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[121,32,171],"tags":[2002],"yoast_head":"\n