The Government of Ghana issues 3-Year United States Dollar (USD) denominated Treasury Bond (Rollover), using the “Book-build format”.
This is according to a statement released by the Bank of Ghana and intimates that the 3-Year Treasury bond is ‘senior unsecured’ in terms of its security status, and it’s supposed to mature by the year 2023 with a ‘bullet’ principal repayment method.
The Bank of Ghana intimated that “each Bond shall have a face value of One US dollar with a minimum bid of USD50 Thousand and integral multiples of USD1 Thousand, thereafter.” The listing will be done on the Ghana Stock Exchange (GSE).
The bond issuance is in accordance with the Governing Law of Ghana and follows the release of initial pricing guidance through the Ghana Stock Exchange (GSE), the Bank of Ghana opined.
“The Bond will be issued in 2 Series: Foreign Exchange Account (“FEA”) Series and Foreign Currency Account (“FCA”) Series. The FEA Series and the FCA Series will be identical to each other except that only funds domiciled in an FEA can be used to purchase FEA Series Bonds and only funds domiciled in an FCA can be used to purchase FCA Series Bonds”
In terms of distribution, the bond is to be “Marketed to Investors resident in Ghana and Non-Resident Ghanaian Investors Only,” the Bank of Ghana mentioned.
Tomorrow, Friday, November 13, 2020, the settlement/Issue of the 3-Year USD denominated Treasury bond by the Republic of Ghana will take effect, the Bank of Ghana alerted.
Today, 12th November marks the Final Pricing and Allocation. This will include the release of a “Revised and Final Pricing Guidance” deemed “necessary during the Book-build”. Also, the books close around 3:00 PM, the Bank of Ghana pronounced.
Detailing the pricing, bookbuild, and allocation methodology prior to the settlement/Issue date, the Bank of Ghana indicated that last Tuesday, November 10, 2020, the Initial Pricing Guidance was released. The opening of the book-build followed suit yesterday, Wednesday, 11th of November at 9:00 AM. A “Revised Pricing Guidance” is released as “necessary during the Book-build”.
The Bank of Ghana cautioned the issuance methodology adopted requires that “all successful bids will clear at a single clearing level Discretionary allocation at the single clearing level in event of over-subscription”.
The issue methodology further requires that aside from the application of the book-building format, bids are accepted on a yield (percentage) basis, the Bank of Ghana asserted.
It should be noted that the November 2020 3-Year USD denominated Treasury bond Issuance will be done through Absa, Databank, Fidelity, IC Securities, and Stanbic who will serve as “active joint book-runners for the bond,” the Bank of Ghana added.
