Ghana’s 3-Year Bond Oversubscribed as ....

...Economy Attracts Investors

Ghana’s auction of 400 million cedis ($265 million) of three-year bonds was oversubscribed by 88 percent as investors show confidence in the economy.

Investors bid a total of 753.7 million cedis for the offer, which closed yesterday, according to Francis Andoh, head of Ghana’s treasury. The bank sold 401.2 million cedis of the notes at a 13.45 percent yield, he said.

“It shows investors are still confident about our economy despite some challenges,” Andoh said in a telephone interview today. “Foreign-based investors were predominant,” and their purchases should strengthen the cedi, he said.

The cedi weakened 0.1 percent to 1.5110 per dollar at 1:38 p.m. in Accra, poised for the strongest closing level in a week, according data compiled by Bloomberg.

The market should expect quarterly offerings of the debt, Andoh said. Ghana issued the three-year bonds five times in 2010, with four sales oversubscribed.