Gov’t issues GHc1 bn 5-Yr T-Bonds this week

Government today will open the book-build, after releasing an initial pricing guidance yesterday for the issuance of five-year Treasury bonds through the Ghana Stock Exchange. The initial price guidance will also be revised today.

The bonds will mature in 2024.

This is according to an announcement made by the Ministry of Finance (MoF) on Friday, April 12, 2019.

Per the government’s debt issuance calendar, five-year bonds to the tune of GHc 1, 000 million are expected to be issued, the only issuance of this tenure planned for the second quarter of 2019.

The bonds to be issued each have a face value of GHc 1, with a minimum subscription of GHc 50,000 and multiples of GHc 1,000 thereafter. The offer is open to both local and foreign investors.

The five-year notes would be issued through Barclays Bank, Databank, Stanbic Bank, Fidelity Bank and IC Securities acting as book runners for government.

Books are expected to be closed midday on Thursday, with the final pricing and allocation determined.

Successful bids will be cleared at a single clearing level. However in the event of oversubscription, there will be a discretionary allocation at the single clearing level.

Government aims to build benchmark bonds through the issuance of the different instruments, including the five-year bonds which will be issued once a month through the book-building method.

In the second quarter of 2019, government plans on raising a total GHc 12,100 million from the domestic market, representing a 19.2 percent increase over the amount targeted in the first quarter of GHc 11,250 million.

Of the total gross amount, GHc 11,533.94 million is to rollover maturities of maturing debt and the remaining GHc 566.06 million is fresh issuance to meet government’s budgetary financing requirements for this year.

By Joshua W. Amlanu