Ghana raises over GH¢400m as first 2013 bond issue is over-subscribed

The Ghana government has successfully raised a little of over GH¢400 million from its first bond issue for 2013, which would be used largely to finance Ghana’s maturing debts.

This is the first three-year bond to be issued out of three planned for the first half of 2013 and  Government expects to raise a total of GH¢1.2 billion.

A statement issued by the Public Relations Unit of Ministry of Finance and Economic Planning in Accra on Thursday, and copied to Ghana News Agency said although Government proposed to raise an amount of GH¢400 million, the auction recorded inflows of GH¢2.2 billion, meaning the bond issue was oversubscribed by more than  450 per cent.

Government accepted GH¢402,072,727.00 million at a coupon rate of 16.73 per cent.

About 99 per cent of the bids came from foreign investors and the rest from firms and institutions, commercial banks and individuals.

Dr Kwabena Duffuor, Minister of Finance and Economic Planning said: “The 450 per cent over subscription is an indication of investor confidence in Ghana’s economy. Government is committed to ensuring fiscal consolidation for the fifth year running.”

Last year government issued six cedi denominated bonds, which was two five-year fixed rate bonds and four three-year fixed rate bonds all of which were oversubscribed.

Source: GNA