Skip to main content

Govt. issues its maiden domestic US dollar 2-year bond


By: Fred Yaw Sarpong

Government has successfully issued a US$94.64 million denominated bond on the domestic bond market.

The 2-year bond, which was highly subscribed, yielded an amount of US$94.64 million at a coupon rate of 6%, consistent with the initial price range of between 5.5% and 6.5%.

A statement from the Ministry Finance says on settlement, this 2-year bond becomes one of Ghana’s lowest yield bonds aside the 2017s which are currently trading at about 5.45% and maturing in less than a year.

It stated that the offer, which was open to resident investors only, attracted a total of 26 bids with a face value of US$99.64 million.

“The proceeds of this bond will form part of the sinking fund (established by Government to repurchase or redeem specified debt) to buy back some of the high coupon instruments on the local and international capital market as part of our liability management strategy. Going forward, Government will explore the advantages that this instrument type presents as an alternative source of funding, to finance the dollar component of future budgets,” the statement said.

According to the ministry, the issuance of this bond gives further impetus to Government’s Medium Term Debt Management Strategy, which among others focuses on minimizing and/or replacing expensive shorter dated instruments with longer dated issuances. It also provides a positive boost to the development of our domestic debt market by introducing a new investment instrument for institutional and individual investors.

“The successful issuance of the bond evidenced by the generally high subscription and the favorable pricing is a reflection of the returning confidence in the Ghanaian economy and further confirms Ghana’s bright medium term prospects,” it mentioned.



Comments

Popular posts from this blog

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…

Tigo donates 540 tablet phones Death and Birth Registry

By: Sarpongs.blogspot.com 
Tigo Ghana has presented 540 tablets phones with internet connectivity to the Births and Deaths Registry (BDR) for the pilot phase of the automated birth registration programme.
This form parts of Tigo’s strategic focus to accelerate birth registration in Ghana through mobile technology. Tigo in partnership with UNICEF is providing this technology platform.
A statement from Tigo stated that the tablets will allow birth registration attendants from the Births and Deaths Registry to electronically capture details of all new births in 300 communities across Ghana.
The automated birth registration programme which was launched in May this year, is expected to make a significant contribution to an improved national average registration rate, an increase from 65 percent of all children under age one to at least 75 percent by the end of 2017.
According to Tigo, a successful pilot will also contribute to progress under Ghana’s National Civil Registration and Vital Statist…

Vodafone fined a record £4.6 million for IT blunder

A top-up error left pay-as-you-go customers out of pocket and complaints were mishandled
Vodafone has been fined a record £4.6 million by the telecoms watchdog forleaving thousands of customers out of pocket in a disastrous IT blunder.
Ofcom found that the operator mishandled complaints and failed to pay into the accounts of more than 10,000 pay-as-you-go customers when they topped up their credit.
The top-up error, which cost customers £150,000 over 17 months in 2014 and 2015, stemmed from the moving of 28.5 million accounts to a new billing system.Errors in billing data and price plans caused so much protest that it made Vodafone the most complained-about mobile network in Britain.The technical issues were resolved by April 2015 and all accounts are now on the new system, Vodafone said.
Lindsey Fussell, Ofcom’s consumer group director, said:“Vodafone’s failings were serious and unacceptable, and these fines send a clear warning to all telecoms companies.”
The company says that it has ref…