• About
  • Advertise
  • Privacy Policy
  • Contact
Monday, October 27, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Gov’t raises GH¢1.77 billion from 5-year bond issuance

thevaultzby thevaultz
March 6, 2021
Reading Time: 3 mins read
Bond Sales Hit GH¢1,839.65m as Investors’ Confidence Improve

The government raises GH¢1.77 billion from the issue of a 5-year bond upon tapping the domestic markets for financing.

Accordingly, the money is for supporting the government’s spending and obligations. Notably, this includes the financing of transactions and projects, to redeem maturing debts as well as to cover budget deficits.

Furthermore, this will go a long way to increase diversification of investor base and funding sources, enhancing capital inflows and liquidity. Also, it will reinforce the development of the Ghana financial markets.

RelatedPosts

Banking Sector Turns Corner as Bad Debts Plunge 46% — NPL Ratio Drops to 20.8%

T-Bill Yields See Mixed Signals as GH¢2 Billion Shortfall Rocks Money Market

GSE Closes Week in Red as Market Capitalization Dips to GHS 166.5bn

Details of Auction

The Bank of Ghana, who manages the government’s borrowing programme reveals that all bids got accepted. Also, investors came in with bids ranging between 18%-18.3%.

More so, the secondary market yield on the 5-year bond is 18.3%. The bonds’ face value is GH¢1 with a minimum bid of GH¢50,000 and multiples of GH¢1,000 afterwards.

Additionally, the debt security matures in 2026 with a settlement/ Issue date effective Monday, March 8. Investors should also expect to receive a single payment of its principal upon maturity. This is because a ‘bullet’ principal repayment method applies to the bond issuance.

ADVERTISEMENT

In a statement, the Central Bank said the 5-year bond issuance is a rollover of maturing 2-year notes. According to Courage Martey, a Senior Analyst with Databank, this refinancing strategy maintains the maturity profile of the debt portfolio.

Another Analyst, Barclay Palmer suggests “Refinancing debt is a common way to take advantage of improved financial conditions in the market”.

Although government bonds are nearly risk-free in nature, the Central Bank cautions that the 5-year bond is unsecured. As such, it can carry risks including country risk, political risk, and central-bank risk.

Likewise, James Chen, a Bloomberg guest expert says Government bonds can provide a combination of considerable safety and relatively high returns. However, investors need to be aware that governments sometimes lack the ability or willingness to pay back their debts.

BoG Invites Applications for Primary Dealers and Bond Market Specialists

Summary of procedures before 5-year bond issuance

Procedures for issuing the 5-year bond began on Tuesday, March 2, with the publication of an initial pricing guidance. Consequently, closing of order books were on Thursday, March 5.

Moreover, the government uses a book building process in determining the issue price of the bond at the Initial Public Offering (IPO). This involves inviting investors to submit bids for the number of shares and the price they are willing to pay for them.

Active book-runners for the bond were five financial institutions. They are: Absa, Databank, Fidelity, IC Securities, and Stanbic, ensuring the execution of transactions are smooth and efficient as possible

In addition, listing of the bond is mainly through the Ghana Stock Exchange (GSE), according to the governing laws. Both resident and non-resident investors can participate in the auction.

Finally, vaccine optimism, marginal declines in inflationary pressures and a fairly stable cedi may boost investor sentiment. Subsequently, this may bolster capital inflows and enhance the country’s liquidity position. However, volatility continues to remain in the near term as the coronavirus pandemic, rising debt levels and other challenges persist.

Tags: AbsaBank of GhanaDatabankFidelityGovernment bondsGovernment borrowingGovernment of Ghana Securities AuctionIC Securitiesinvestorsstanbic bankVaccine Distribution
Share1Tweet1ShareSendSend
Please login to join discussion
Previous Post

We Are Dismayed By Domelevo’s Forceful Retirement- CGM To President

Next Post

Whether you shop online or at its brick-and-mortar store in

Related Posts

Banking Sector Turns Corner as Bad Debts Plunge 46% — NPL Ratio Drops to 20.8%
Banking

Banking Sector Turns Corner as Bad Debts Plunge 46% — NPL Ratio Drops to 20.8%

October 27, 2025
T-bill auction Ghana, government misses target, mixed yields, investor confidence, fixed deposits Ghana
Securities/Markets

T-Bill Yields See Mixed Signals as GH¢2 Billion Shortfall Rocks Money Market

October 27, 2025
GSE Closes Week in Red as Market Capitalization Dips to GHS 166.5bn
Securities/Markets

GSE Closes Week in Red as Market Capitalization Dips to GHS 166.5bn

October 25, 2025
BoG Introduces Smart Supervision Tools for Banks and Fintechs
Banking

BoG Introduces Smart Supervision Tools for Banks and Fintechs

October 24, 2025
Ahead of November Budget Reading.
Economy

Finance Ministry Consults Ahead of 2026 Budget Reading

October 24, 2025
GSE Financial Index Defies Odds, Hits Fresh High Despite Benchmark Dip
Securities/Markets

GSE Financial Index Defies Odds, Hits Fresh High Despite Benchmark Dip

October 24, 2025
CETAG Threatens Nationwide Strike Over Unpaid Allowances
General News

CETAG Threatens Nationwide Strike Over Unpaid Allowances

by Silas Kafui AssemOctober 27, 2025
ADB Delivers GH¢447m Pre-Tax Profit in Stunning Turnaround in Q3
Banking

ADB Delivers GH¢447m Pre-Tax Profit in Stunning Turnaround in Q3

by M.COctober 27, 2025
Trump Rebuffs Putin’s Offer To Aid Israel-Iran Conflict Mediation
Europe

Putin Meets With North Korea’s Foreign Minister

by Comfort AmpomaaOctober 27, 2025
Hon. Ato Forson proposed Nov. 13 for 2026 budget reading.
Economy

Finance Minister Proposes November 13 to Present 2026 Budget

by Michael Teye-Bio NaduteyOctober 27, 2025
Prof Ahmed Abdulai Jinapor, Director-General GTEC
General News

GTEC Halts Proposed Fee Increments at Public Colleges of Education

by Evans Junior OwuOctober 27, 2025
President John Dramani Mahama
General News

Calls Mount on President Mahama to Appoint Substantive Defence Minister

by Silas Kafui AssemOctober 27, 2025
CETAG Threatens Nationwide Strike Over Unpaid Allowances
ADB Delivers GH¢447m Pre-Tax Profit in Stunning Turnaround in Q3
Trump Rebuffs Putin’s Offer To Aid Israel-Iran Conflict Mediation
Hon. Ato Forson proposed Nov. 13 for 2026 budget reading.
Prof Ahmed Abdulai Jinapor, Director-General GTEC
President John Dramani Mahama

Recent News

CETAG Threatens Nationwide Strike Over Unpaid Allowances

CETAG Threatens Nationwide Strike Over Unpaid Allowances

October 27, 2025
ADB Delivers GH¢447m Pre-Tax Profit in Stunning Turnaround in Q3

ADB Delivers GH¢447m Pre-Tax Profit in Stunning Turnaround in Q3

October 27, 2025
Trump Rebuffs Putin’s Offer To Aid Israel-Iran Conflict Mediation

Putin Meets With North Korea’s Foreign Minister

October 27, 2025
Hon. Ato Forson proposed Nov. 13 for 2026 budget reading.

Finance Minister Proposes November 13 to Present 2026 Budget

October 27, 2025
Prof Ahmed Abdulai Jinapor, Director-General GTEC

GTEC Halts Proposed Fee Increments at Public Colleges of Education

October 27, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address