Government has successfully raised a little of over GH¢400 million from its first bond issue for 2013. The money raised would be used to largely finance Ghana's maturing debts.
This is the first three-year bond to be issued out of three planned for the first half of 2013. Government expects to raise a total of GH¢1.2 billion from these bonds.
Though Government proposed to raise an amount of GH¢400 million, the auction recorded inflows of GH¢2.2 billion, meaning the bond issue was oversubscribed by over 450%.
Government accepted GH¢402,072,727.00 million at a coupon rate of 16.73%. About 99% of the bids came from foreign investors and the rest from firms and institutions, commercial banks and individuals.
Dr. Kwabena Duffuor, Acting Minister for Finance and Economic Planning said, "The 450% over subscription is an indication of investor confidence in Ghana's economy. Government is committed to ensuring fiscal consolidation for the fifth year running."
Last year government issued six cedi denominated bonds, i.e. two five-year fixed rate bonds and four three-year fixed rate bonds all of which were oversubscribed.