Issuance of 5-year domestic dollar bond : Government gets favourable yield
Government got a favouarble interest rate from the issuance of the 5-year domestic dollar denominated bond, a day after the announcement of the 2022 Budget and Economic Policy.
It mobilised $168.98 million from the debt instrument which was opened to both local and foreign investors, the auctioning results revealed.
The government accepted all the bids from the investors at a reasonable interest rate of 6%.
This is because it entered the market at a time investors were demanding higher rate on government’s treasury bonds.
The results may indicate that there is still interest in Government of Ghana securities despite the perceived risk in the economy, particularly the high debt and arrears.
Analysts believe the decision by the government to seek bilateral financing and syndication loans rather than going to the international capital market is paying results.
They also think the move by the government to raise revenue from electronic transactions and other payments announced in next year’s budget has also contributed to this relative good performance. Proceeds of the funds will be used to finance the budget.
In recent times, the government has been struggling to mobilise funds through the domestic market, as liquidity tightens.
Source: Ghana News
