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Bank of Ghana to issue 3year bond this week

By Kofi AHOVI
The Bank of Ghana (BoG) has announced its intention to raise a total of GH¢300 million through a three-year bond to be auctioned on Tuesday June 2, this year. This would the third exercise for this year.

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.

According to a release on the website of the central bank, 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 Bank of Ghana in February and April, this year, held a tender for 3-Year Fixed Rate Government of Ghana Bond to raise about GH¢320 million and GH¢400 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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