Government’s five-year bond issued to pay maturing bonds has been heavily oversubscribed by more than twice the targeted amount.Even though government set out to mobilize 200 million Ghana cedis, sources said it received over 480 million cedis worth of bids from foreign investors. It however accepted only a little over 244 million Ghana cedis. More than half of the bids for the auction came from foreign investors.
The bond will offer a return of 26 per cent to investors, the highest in a long while, though some investors wanted 33 per cent. This is government’s third bond auction this year, which has seen such high investor interest.
However, some analysts say the returns been offered still shows some high risk investors associate with the economy. But officials at the Finance Ministry say they want to reward investors who continue to have confidence in the economy, in spite of the decline of the Ghanaian cedi.
Ghananewslink
