Ghana secures GH¢3.15bn from 4-year bond auction

The Government of Ghana has secured GH¢3.15 billion through a new 4-year Fixed Rate Bond (FXR) auction. The issuance attracted GH¢4.46 billion in bids, representing a bid-to-cover ratio of 1.41 times and an acceptance rate of 70.57%.

According to the Bank of Ghana, the bond cleared at a yield of 12.00%, which fell at the lower end of the pre-auction market expectation of 12.00% to 13.50%. This yield is approximately 130 basis points above the post-Domestic Debt Exchange Programme (DDEP) four-year secondary market reference rate of 10.7%.

The cedi-denominated Treasury bond, expected to mature in 2030, was marketed to both resident and non-resident investors to raise funds from the domestic debt market. Active bond specialists for the offer included Absa Bank, CalBank, Fincap Securities, GCB Bank, OA Capital, and Stanbic Bank. The bond is expected to be listed on the Ghana Stock Exchange.