Thursday 26th May , 2016 8:15 am
Business
The Bank of Ghana (BoG) has issued a
500 million Ghana cedi bond today to help government raise funds to restructure
its debt and maturity settlement.
A statement copied to Citi
Business News indicated that, the move is in accordance with government’s
securities for May, 2016; which is at a 3-year fixed rate bond through
the auction process.
According to the statement, the
instrument will be issued at par, bearing a coupon rate equal to the highest
competitive bid accepted at the auction for the security, and shall carry
throughout the term of the security.
The bond, which has a minimum bid of GH¢50,000,
and multiples of GH¢1,000 thereafter shall have a face value of one Ghana
cedi.
Some domestic bonds issued in 2016
This is not the first time
government has attempted to raise funds through the domestic bonds market in
2016.
On January 7, 2016, government
failed to obtain a similar amount of 500 million cedis bond it issued to
restructure its debt and maturity settlement.
Total bids received at the time amounted
to 426.23 million cedis.
In May 2016, government accepted
1.123 billion cedis (294 millon dollars) for a three-year domestic bond with a
yield of 24.5 percent.
Proceeds of the bond, which was open
to offshore investors and sold through a book-builder’s system was expected to
be used to finance the 2016 budget.
Total bids received at the time
amounted to 1.13 billion cedis with 71 percent coming from offshore investors.
Government’s debt stock
Figures released by the BoG on
March, 18,2016 indicated that as at December 2015, Ghana’s total debt stood at
$25.6 billion.
According to the Bank of Ghana’s
summary of macroeconomic and financial data, Ghana’s public debt as at
December
2015 was 25.6 billion dollars, and in cedi terms 97.2 billion cedis.
Per the BoG’s data, Ghana’s debt hit
97.2 billion cedis in December 2015 up from the 96.9 billion cedis recorded in
November of the same year.
In October, 2015 the total debt was
96.3 billion cedis while in September 2015, it was at 91.6 billion cedis, and
in August of that same year 94.8 billion cedis.
As at December 2015 the total debt
stock of 97.2 billion cedis or 25.6 billion dollars cumulated to 72.9 percent
of GDP.
Of this figure the external debt hit
57.8 billion cedis in December, 2015 which is 43.3 percent of GDP.
While in February domestic debt was
39.4 billion cedis making up 29.5 percent of GDP.
In January 2016, domestic debt went
up to 40.6 billion cedis making up 25.6 percent of GDP, it however dropped to
39.9 percent in February 2016 making up 25.2 percent of GDP.
–
By: Lawrence
Segbefia/citibusinessnews.com/Ghana
[Publisher #DjAshTogbeOne]
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