Government 3-year bond issuance fell short of its target by 5.3%, auctioning results from the Bank of Ghana revealed.
It however raised GH¢1.61 billion at a favorable interest cost of 17.70%.
Joy Business learnt the cost of the debt was however in line with prevailing market conditions.
Prior to the issuance of this bond, all government bonds sold this year have been oversubscribed.
It is however unclear whether some foreign investors are not comfortable with the current situation of the fiscal economy, a reason why the bond sale was slightly below target.
The bond was opened to both resident and non-resident investors,
Absa, Databank, Fidelity, IC Securities, Stanbic were the active joint book runners.
Government successfully raised GH¢1.77bn from 5-yr bond early March
The Government successfully raised GH¢1.77 billion from the sale of the 5-year bond at a favorable cost of 18.3% at the beginning of March this year.
This came after it accepted all the bids from the investors, largely dominated by foreigners or non-resident investors.
Also, all bids were submitted within the Initial Pricing Guidance of 17.8% to 18.4%. However, the government capitalized on the strong demand to compress the final clearing yield or interest rate to 18.3%.
