The Government of Ghana has announced the issuance of a 3-year Ghana cedi denominated Treasury bond with a settlement/ Issue date effective Monday, November 30, 2020, using the “Book-build format”.
This is according to a statement released by the Bank of Ghana and indicates 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 posits that “each Bond shall have a face value of One Ghana Cedi with a minimum bid of GHS50 Thousand and multiples of GHS1 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.
In terms of distribution, the general public is hereby notified that the bond is to be “marketed to Resident Investors or Open to Non-Resident Investors,” the Bank of Ghana added.
Giving a breakdown of procedures to be undertaken including the pricing, book-build, and allocation methodology regarding the offer period, the Bank of Ghana indicates that the opening of the book-build starts today, Wednesday, 25th November at 9:00 AM. A “Revised Pricing Guidance” is to be released as “necessary during the Book-build”.
The Bank of Ghana further pronounced that although Tuesday, November 24, 2020, marked the day the Initial Pricing Guidance was released, tomorrow, November, 26 will be the Final Pricing and Allocation of the Treasury bond. This includes the release of a “Revised and Final Pricing Guidance” deemed necessary during the Book-build.
Also, “books are expected to close around 3:00 PM on Thursday Final Pricing and Allocation,” the Bank of Ghana alerted.
The Bank of Ghana has cautioned that 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.
The Bank of Ghana finally informs the general investing public that the November 2020 3-year Ghana cedi 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”.
