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Business News of Friday, 1 February 2008

Source: GNA

Golden Jubilee Savings Bond to be launched abroad

Accra, Feb. 01, GNA - Strategic African Securities (SAS) Finance Group, advisors of the government on Ghana Golden Jubilee Savings Bond, is leading a team of experts to launch the bond in Europe and North America next week.

The bond, expected to raise 50 million GH cedis for infrastructural development in the country, would be launched in Cologne, London, and Amsterdam.

Some officials of the Ministry of Finance and Economic Planning would join the SAS team to perform the launch on behalf of the Government of Ghana.

Speaking to the Ghana News Agency in Accra on Friday, Mr Mawuli Hedo, Senior Corporate Advisor of SAS Finance Group, said in addition to the launch, the experts would spend some time to educate Ghanaians living in the Diaspora the prospects of the bond.

He said: "the bonds offer a good investment opportunity for Ghanaians living abroad due to its high rate of interest. "In the face of falling interest rates, the effective rate of 16.1 percent on these bonds is very attractive," Mr Hedo said. The jubilee savings bond would be issued at a face value of 10 GH cedis and in multiples of 10 GH cedis thereafter.

Interest rate for the bond would be fixed at the prevailing five-year Government of Ghana rate on the issue date for investors. Retail investors would receive additional interest of 0.5 percent plus the prevailing rate on the Government of Ghana five-year Bond. It has a five-year maturity period, which would be fixed on the purchase date with a minimum holding period of three years after which they might be redeemed at face value plus accrued interest. There is an early redemption charge of 1.5 percent in the fourth year and one percent in the fifth (5th) year.