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.
Joy Business learnt the amount raised for 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.
The interest rate is however within the current secondary market conditions.
Analysts believe the generally successful conduct of the just-ended Presidential and Parliamentary elections appear to have rejuvenated investor appetite for medium to long term securities.
“Overall, the very low yields in advance markets amidst the unrelenting increases in covid-19 infections appear to be driving foreign portfolio investors towards frontier markets like Ghana”, Senior Research Analyst at Databank Research, Courage Martey told Joy Business.
He further said “the vaccine optimism appears to have also boosted the frontier market with a modest recovery in oil prices, boosting investor confidence and selectively driving foreign portfolio capital towards economies with credible macro frameworks.”
The coupon rate for the 3-year bond was 19.25% whilst that of the 20-year Treasury bond was within the yield target.
Absa, Databank, Fidelity, IC Securities and Stanbic Bank were the joint book runners for the issuance of the two debt instruments.
Government raised GH¢650.16m from 3-year bond on November 26
Government raised GH¢650.16 million from the 3-year bond issued in the last week of November, 2020.
The yield or coupon rate was 19.25%, a rate which many analysts described as being in line with secondary bond market pricing levels.
Since it was a rollover instrument, majority of the funds were used to settle maturing debt.