Government sells $98m of local bonds at 18% yield

The Finance Ministry accepted all ¢471 million ($98 million) worth of bids tendered for a 3-year domestic bond issued on Thursday.

The country will pay a slightly higher yield of 18 percent compared to the last sale, joint book-builders Barclays Bank Ghana said.

An initial guide price for the 2021 paper, which was open to non-resident investors, was set at between 17.25 percent and 18 percent.

Settlement is due on July 30, Barclays said.

The West African major commodity exporter is seeking funds to finance the government’s 2018 budget and restructure debt.

It sold a 3-year bond in a similar transaction last month with a 17.5 percent yield.