Government has successfully issued its 5 year cedi denominated Treasury bond. Government was looking to raise about 516.5 million cedis but received a subscription of about 644 million cedis. It however accepted 35 out of a total of 47 bids received which culminated to over 516 million cedis. The subscription was 127.5 million cedis more than the expected.
This represented a subscription ratio of 1.25 times higher than the expected number of bids. The bond which matures on November 23, 2020 was issued at a rate of 24 percent.
Meanwhile some analysts who have been speaking to Citi Business News say fiscal discipline by the government will largely help it meet its target of reducing the country’s debts as it borrows from the domestic market.
“I like what the government is doing towards that (long term domestic market) but the fiscal discipline needs to be improved.” Chief Executive of Databank Group, Kojo Addae-Mensah said.
Kojo Addae-Mensah however commended government for shifting attention to long term bonds on the domestic market. “At least they are looking at long term borrowing now that is a positive sign.
They are not crowding out the short term market anymore so the idea is to refinance the short term market and refinance it with the long term. I like the signal, the positive of it, and the fact that it is five years. It is good I wish they will do more of the long term bonds than go out for Euro bonds and the like.” He stated.
It is still unclear how government intends to spend the amount it has so far realized.
By: Pius Amihere Eduku