Govt set to rollover 3-Year Cedi debts next week

Each bond to be issued shall have a face value of GH

Government will from Tuesday, September 15, 2020, begin process to rollover maturing debts in the three-year treasury bond category, with the release of an initial pricing guidance through the Ghana Stock Exchange.

According to an announcement made by the Bank of Ghana on Friday, September 21, 2020, the Bonds will mature in 2023.

Per the government’s debt issuance calendar for September to November 2020, an amount of GH¢1,500 million is expected to be issued this month. Of the GH¢ 22,727.87 million domestic debt securities to be issued during the period, GH¢ 6,800 million is planned for the month of July.

Each bond to be issued shall have a face value of GH¢1, with a minimum subscription of GH¢50,000 and multiples of GH¢1,000 thereafter. The offer will be opened to both local and foreign investors.

Books are expected to be closed midday on Thursday, around 2:30 pm, with the revised and final pricing 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. Investors are expected to be settled or issued with the bonds on Monday, September 21, 2020.

Per its issuance calendar, Government aims to build benchmark bonds through the issuance of the different instruments, including the three-year bond through the book-building method.

The three-year bond would be issued through Absa, Databank, IC Securities, Fidelity Bank and Stanbic Bank acting as bookrunners for government.

Government Debt Strategy

The 2020 debt strategy focuses on an appropriate financing mix to mitigate the costs and risks to achieve the desired composition of the public debt portfolio with respect to borrowing from external and domestic sources.