Government commences issuance of 6 year Treasury bonds today

• An amount of GHC 800 million in six year bonds is expected to be issued this month.
• Of the GHC 17,837.87 million in domestic debt securities, GHC 5, 650 million is planned for the month of July.
• Investors are expected to be settled or issued with the bonds on Monday, July 20, 2020.
• The six-year bonds would be issued through Absa Bank, Databank, Stanbic Bank, Fidelity Bank and IC Securities.
• Books are expected to be closed midday on Thursday, around 2:30 pm, with the revised and final pricing determined.

Government will today July 15, 2020 start the process for the issuance of six-year treasury bonds with the opening of the book-build.

This follows the release of an initial pricing guidance for the bond issuance through the Ghana Stock Exchange.

According to an announcement made by the Bank of Ghana on Tuesday, July 14, 2020, the Bonds will mature in 2026.

Additionally, per the government’s debt issuance calendar for June to August 2020, an amount of GHC 800 million in six year bonds is expected to be issued this month. Of the GHC 17,837.87 million in domestic debt securities of various tenors to be issued during the three month period, GHC 5, 650 million is planned for the month of July.

Each bond to be issued shall have a face value of GHC 1, with a minimum subscription of GHC 50,000 and multiples of GHC 1,000 thereafter. The offer will be opened to both local and foreign investors.

Books are expected to be closed midday on Thursday, around 2:30 pm, with the revised and final pricing determined.

Successful bids will be cleared at a single clearing level. However, in the event of over-subscription, there will be a discretionary allocation at the single clearing level. Investors are expected to be settled or issued with the bonds on Monday, July 20, 2020.

Per its issuance calendar, Government aims to build benchmark bonds through the issuance of the different instruments, including the six-year bonds through the book-building method.

The six-year bonds would be issued through Absa, Databank, Stanbic Bank, Fidelity Bank and IC Securities acting as book runners for government.

Government Debt Strategy

The 2020 debt strategy focuses on an appropriate financing mix to mitigate the costs and risks to achieve the desired composition of the public debt portfolio with respect to borrowing from external and domestic sources.