Home | Goldstreet Business
Sunday, June 22, 2025
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result

GHc1.92 bn GAT bonds go up on sale

February 20, 2019
in Uncategorized
0
Share on FacebookShare on Twitter
  • GHc780m 1st tranche this month
  • 14 bn 2nd tranche a week later

Ghana Amalgamated Trust, the special purpose vehicle established by the Ministry of Finance to raise equity capital for the recapitalization of five indigenously owned banks aims to issue bonds to the tune of GHc1.92 billion to private investors over the next few weeks, the proceeds of which the Trust will use for the recapitalization.

The first tranche of the bonds, worth GHc780 million, will be issued before the end of this month and the proceeds will be used to recapitalize four of the five banks. These are: Agricultural Development Bank which will get GHc127 million, Prudential Bank which is to get GHc251 million, the merged Omni Bank and BSIC (Sahel Sahara Bank) which is to get GHc130 million; and Universal Merchant Bank which is to receive GHc247 million.

RELATED POSTS

Nurses and Midwives call off nationwide strike

Zoomlion Contract Will Not Be Renewed, Sweepers’ Fees to Increase—President Mahama

The second tranche of the bonds, worth GHc1.14 billion will be issued shortly after, possibly within days of the first tranche.  The second tranche aims to recapitalize National Investment Bank – which currently has a capital deficit of over GHc700million – to the new GHc400 million minimum capital requirement.

GAT’s managing director, Eric Otoo admits that the trust is operating on a tight schedule imposed on it by the Bank of Ghana which insists that all five banks must have been recapitalized by the end of March, which means both issuances must have been successfully completed by that time if the beneficiary banks are not to lose their operating licenses.

Bonds issued through both tranches will have tenors of five years and each will have coupon interest rates of 21 percent. However they have bee designed as zero coupon bonds which means all interest will be accumulated and paid as a lump sum along with the principal at the end of the bonds tenor. This, explains Otoo is to align the bonds with the needs of pension funds and life insurance firms – two of the typical kinds of institutional investors being sought – whose liabilities are mainly long term and so who require long term assets to match; although in actual fact this is a way of ensuring that the banks can use all their new equity capital for the next five years.

Where the two tranches will differ however is in the degree of backing to be provided by government itself. GAT is currently in the process of securing  a government guarantee of 70 percent of the value of bonds to be issued as the first tranche; but it is seeking to secure a 100 percent government guarantee for the second tranche since the investment into NIB is clearly much riskier, both because of the volume of the investment and the financial circumstances of the bank, as compared with the other four beneficiary banks. While these guarantees have not yet been secured, GAT’s Chairman, Albert Essien assures that they will be provided, once the requisite approval processes are completed.

Subscription to the bonds will be open to all types of investor, foreign and local, institutional and individual, although the structure of the bonds will appeal primarily to major institutional investors, particularly pension funds and life insurance firms who typically invest long term. The pricing of the bonds at 21 percent matches the offered rate on government’s most recent six year treasury bond issue done a few weeks ago and this makes the GAT bonds competitive with regards to pricing.

The investment risk however is considerable; with all interest accruing being piled up to maturity, this means that investors are being asked to bet that GAT can effectively pay double the face value of the bonds five years from now, by selling the shares it will acquire in the banks to interested parties.

This is why the government guarantees will be crucial in providing comfort to investors in the impending bonds, since they mean that investors in the first tranche are assured of 70 percent of their investment no matter how well the four beneficiary banks do over the next five years; and investors in the second tranche – the relatively high risk NIB – will be assured of their entire investments.

However GAT itself is contracting banking and finance experts to improve the quality of the beneficiary banks operations over the five year tenor of the bonds in an effort to ensure that they deliver the requisite financial performance to make their respective market values high enough to attract purchase prices that will pay off the GAT bond without recourse to government’s guarantees.

By Toma Imirhe

facebookShare on Facebook
TwitterTweet
ShareTweetShare

Related Posts

Nurses and Midwives call off nationwide strike

Nurses and Midwives call off nationwide strike

June 13, 2025
Zoomlion Contract Will Not Be Renewed, Sweepers’ Fees to Increase—President Mahama

Zoomlion Contract Will Not Be Renewed, Sweepers’ Fees to Increase—President Mahama

June 13, 2025
Ghana Nets Over $1.17 Billion in Forex from Goldbod Programme – Finance Minister

Ghana Nets Over $1.17 Billion in Forex from Goldbod Programme – Finance Minister

June 5, 2025
FDA boss elected first Director-General of African Medicines Agency

FDA boss elected first Director-General of African Medicines Agency

June 5, 2025
Importers and Exporters Association calls on President Mahama to terminate ‘wasteful’ SML contract

Importers and Exporters Association calls on President Mahama to terminate ‘wasteful’ SML contract

June 5, 2025
Next Post

Power play at GNPC is ugly and must be stopped - IES

Mining sector rakes in over GHc1bn in 2016

Archives

<
June 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • August 2024
  • July 2024
  • June 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
     12
3456789
10111213141516
17181920212223
2425262728  
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
   1234
567891011
12131415161718
19202122232425
26272829   
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
  12345
6789101112
13141516171819
20212223242526
2728     
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
 123456
78910111213
14151617181920
21222324252627
28      
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
1234567
891011121314
15161718192021
22232425262728
       
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

Nurses and Midwives call off nationwide strike

Nurses and Midwives call off nationwide strike

June 13, 2025
Zoomlion Contract Will Not Be Renewed, Sweepers’ Fees to Increase—President Mahama

Zoomlion Contract Will Not Be Renewed, Sweepers’ Fees to Increase—President Mahama

June 13, 2025

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.