The Government has accepted all bids for the 7-year cedi bond and the 3-year dollar bond issuance, according to auctioning results obtained from the Bank of Ghana.
For the 7-year cedi bond, it raised ¢1.03 billion Ghana cedis at a rate of 20.5%, whilst it got $388.9 million dollars for the 3-year dollar bond at an interest of 4.75%.
However, the result shows that there are some uncertainties in the market with investors mindful of the covid-19 pandemic and other fiscal challenges in the Ghanaian economy.
Meanwhile, analysts believe the pricing was within the current secondary market conditions, and as a result, the majority of the funds would be used to repay maturing debts.
A book-building approach was adopted, indicating a pricing guideline was set before the bond was floated.
The joint book-runners were Absa, Databank, Fidelity, IC Securities, Stanbic.
Since the emergence of the coronavirus pandemic, the government has been accepting all bids for bonds issued, except the 2-year bond issued last month.
However, the government has exceeded its Treasury bills sale target.
