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Gov’t sets 12%–12.5% guidance for 7-year bond as market re-entry gains momentum

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Government has announced an Initial Pricing Guidance (IPG) range of 12% to 12.5% for its 7-year cedi-denominated bond.

This signals that, depending on the outcome of the auction, the Finance Ministry could settle within this range as the interest payable to investors.

The guidance was contained in the latest market update on the bond issuance.

Some market analysts say the range reflects improving economic conditions. They note that the current 7-year bond on the secondary market trades around 13% to 14%, making the new guidance an improvement and a sign of stronger macroeconomic fundamentals.

According to the update, the book-build process is now open and will close in the afternoon of Wednesday, April 1, 2026.

Further updates on the book, including timing and any revisions to the pricing guidance based on demand, will be communicated to the market as necessary.

Investors are also watching closely to see how much government aims to raise from the market.

Background

On March 30, the government formally launched the 7-year cedi-denominated bond.

This is the first time since 2022 that the government has issued such a bond, following the expiration of restrictions under the Domestic Debt Exchange Programme introduced in 2023 after the debt default.

The issuance document indicates that the final interest rate will be announced on April 1, 2026, with settlement scheduled for April 7, 2026.

Investors are required to submit a minimum bid of GH¢50,000. The bond is open to both resident and non-resident investors.

Proceeds from the bond are expected to finance projects included in the 2026 budget.

Reasons for the Bond Auction

According to a circular accompanying the issuance, government says the move is aimed at re-establishing a domestic funding programme.

This is expected to support liquidity management and the refinancing of maturing obligations.

Authorities are also seeking to rebuild the sovereign yield curve, expand investment opportunities, and restore confidence among both retail and institutional investors.

The Finance Ministry adds that participation will not be limited to pension funds, insurance companies, and asset managers.

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