By Kofi Ahovi
The Bank of Ghana (BoG) plans to raise a total of GH¢300 million through a five-year bond instrument on behalf of the Government of Ghana through an Auction process on July 28, 2011, Business Week has gathered. This would be the first five-year bond instrument and the fourth exercise for this year.
The instrument will be cedi-denominated and will be issued at par. It shall bear a coupon rate equal to the highest competitive bids accepted at the auction for the security. The coupon rate so fixed shall carry throughout the term of the security.
The instrument, which will be issued at par, would be cedi-denominated and will have a face value ofGH¢1.00 and would be available to both resident and non-resident investors. The minimum bid is set at GH¢500,000 and multiples of GH¢10,000 thereafter.
The purpose for the issuance of this bond is mainly to provide a 5-Year GOG benchmark investment and benchmark yield to guide the market; and finance the construction of four major on-going road projects in the country.
Business week has learnt that, the coupon, which will be paid semi-annually, will be determined at the auction to be held. The amount of interest paid on every coupon payment date will be equal to the principal amount at the coupon rate for half-year. The 5-year bond shall be available to both resident and non-resident investors.
The Bank of Ghana in February, April and June this year, held a tender for 3-Year Fixed Rate Government of Ghana Bond to raise about GH¢320 million, GH¢400 million and GH¢300 million respectively. The funds from these exercises were expected to be used to re-finance maturing debts and also fund other government business.
According to the tender results from the central bank, the bid rates for the bonds ranged between 12.25% and 14.25% per annum. The bids that were successfully allotted in full also had bid rates between 12.25% and 12.30% per annum.
The tender results also show a 12.39% per annum interest rate for uniform allotment which took place in early this month.
The Bank of Ghana (BoG) plans to raise a total of GH¢300 million through a five-year bond instrument on behalf of the Government of Ghana through an Auction process on July 28, 2011, Business Week has gathered. This would be the first five-year bond instrument and the fourth exercise for this year.
The instrument will be cedi-denominated and will be issued at par. It shall bear a coupon rate equal to the highest competitive bids accepted at the auction for the security. The coupon rate so fixed shall carry throughout the term of the security.
The instrument, which will be issued at par, would be cedi-denominated and will have a face value ofGH¢1.00 and would be available to both resident and non-resident investors. The minimum bid is set at GH¢500,000 and multiples of GH¢10,000 thereafter.
The purpose for the issuance of this bond is mainly to provide a 5-Year GOG benchmark investment and benchmark yield to guide the market; and finance the construction of four major on-going road projects in the country.
Business week has learnt that, the coupon, which will be paid semi-annually, will be determined at the auction to be held. The amount of interest paid on every coupon payment date will be equal to the principal amount at the coupon rate for half-year. The 5-year bond shall be available to both resident and non-resident investors.
The Bank of Ghana in February, April and June this year, held a tender for 3-Year Fixed Rate Government of Ghana Bond to raise about GH¢320 million, GH¢400 million and GH¢300 million respectively. The funds from these exercises were expected to be used to re-finance maturing debts and also fund other government business.
According to the tender results from the central bank, the bid rates for the bonds ranged between 12.25% and 14.25% per annum. The bids that were successfully allotted in full also had bid rates between 12.25% and 12.30% per annum.
The tender results also show a 12.39% per annum interest rate for uniform allotment which took place in early this month.
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