SEVEN YEAR DOMESTIC BOND BY BANK OFGHANA

The Bank of Ghana has served notice a Gh¢ 400
million, seven-year domestic bond will be issued
in April.
The move is to use longer-term maturities to
restructure the central bank’s rising debt.
According to the BoG’s issuance calendar, a
total of 25.4 billion cedis ($7.88 billion) in
domestic securities is expected to be raised
before July.
Ghana issued its debut seven-year domestic
bond in August 2013 and held a similar auction
three months later with an 18 percent yield.
The bank will also issue five-year bonds in
March and June to raise 440 million cedis each,
and three-year paper worth 630 million cedis
each in February and May to roll over maturing
debts.
The government did not issue a seven-year bond
last year as it wanted to avoid a spike in yields
following a slump in the local currency.
“The Treasury Bills and Notes (91-Day Treasury
Bills – 2-Year Notes) are short term debt
securities. Issuance decisions will be made
weekly depending on Government’s projected
daily cash position for the week ahead. It is
envisaged to issue at least GH¢880 Million of
Treasury Bills and Notes weekly at all times to
support government liquidity requirements which
will include the redemption/rollover of maturing
securities for the week,” the issuance notice
signed by Caroline Otoo, Secretary of the BoG
said.
The Mahama-led administration is currently
before the International Monetary Fund for a
bailout to salvage the ailing economy.