Government secures GH¢1.86 billion from 7-year bond

•Government has secured GH¢1.86 billion from a 7-year bond

•It replaced the maturing 5-year bond

•The new bond was oversubscribed by 3.3%

Government has replaced its maturing 5-year bond with the sale of the 7-year bond yesterday which raked in GH¢1.86 billion, Joy Business has reported.

Analysts say the successful sale of the 7-year bond is due to the long maturity period of outstanding debt as well as easing the refinancing pressure, reducing the cost of servicing loans amongst others.

The new bond was oversubscribed by 3.3%.

Meanwhile, the interest cost of the debt instrument was reduced by 6.4% to 18.10%.

In the past few weeks, the market has been favourably conditioned due to stronger demand and lower interest rate expectations.

Government to borrow GH¢2.9bn between June and August 2021

The Issuance Calendar released by the Finance Ministry has revealed that the government of Ghana is set to borrow a little over Gh¢2 billion fresh funds between June and August 2021 to support the economy.

According to the calendar, the government plans to issue about GH¢21.96 billion, out of which GH¢19.86 billion will be used to pay a maturing debt or rollover maturities.

The new funds are expected to finance government projects outlined in the 2021 Budget and grow the economy in the post-COVID-19 era.

The calendar shows that the government will issue GH¢11.2 billion via the 91-day Treasury Bills, whilst GH¢1.71 billion will be mobilized through the issuance of the 182-day T-bills.