The Government of Ghana 6-year cedi Treasury bond has been oversubscribed by a little above 258%.

This signals rising investor confidence in the Ghanaian economy, following a successful elections last month.

Joy Business understands that the government accepted all the bids worth GH¢2.87 billion because it needs monies to close the fiscal space.

The offer also received strong bids from both local and international investors with the pricing aligned to the secondary market.

The coupon or yield of 19.25% was 0.25% lower than previous rate issued six months ago.

The sizable amount raised is expected to help government create sufficient buffer ahead of frequent upcoming maturities in March.

Absa, Databank, Fidelity, IC Securities and Stanbic Bank were the joint book runners for the issuance of the two debt instruments.

Government accepted all bids for 3-year bond, 20-year bond in December

Last month, the government accepted all bids worth GH¢176.4 million for the 20-year Treasury bond and GH¢1.66 billion for the 3-year bond.

The 20-year Treasury bond was about 38% below the indicative target. But it was about 8% more than the funds raised at the maiden offer last year.

For the freshly issued 3-year bond, the monies raised was slightly more than the indicative target.