Gov’t gets GHS1.5bn from sale of 5-year bond

The government has successfully raised GHS1.49 billion through the sale of a five-year bond.
The bond was oversubscribed by 12.86 per cent as bids totalled GHS1.71 billion.
A report by Graphic Online said the bond was issued at a coupon rate of 8.25 per cent.
The current rate is a slight improvement over the interest charged on the country’s maiden five-year bond, which was issued in January at a rate of 8.75 per cent.
The rate is however within the pricing guideline of 17.25 per cent to 19 per cent that was issued ahead of the sale on July 28.
It is understood that proceeds from the issue will be used to restructure maturing debts and fund some infrastructure projects announced in this year’s budget, among other capital investments.
Stanbic Bank, Strategic Africa Securities (SAS) and Barclays were the joint book runners.
The bond was offered to both resident and non-resident investors.
It will be listed on the Ghana Stock Exchange (GSE), where it will be traded until 2022 when it will mature.