The Government of Ghana starts procedures for the issuance of a 2-Year Ghana cedi denominated Treasury Bond (Rollover) today, November 3, 2020, using the “Book-build format”.
This was captured in a statement released by the Bank of Ghana on Monday, November 2, 2020.
According to the announcement made by the Bank of Ghana, the 2-Year Treasury bond is ‘senior unsecured’ in terms of its security status, and it’s supposed to mature by the year 2022 with a ‘bullet’ principal repayment method.
The Bank of Ghana intimated 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 bond is to be “marketed to Resident Investors or Open to Non-Resident Investors,” the Bank of Ghana added.
Detailing the pricing, bookbuild, and allocation methodology pertaining to the offer period, the statement issued by the Bank of Ghana indicated that beginning Tuesday, November 3, 2020, is the release of the Initial Pricing Guidance. The opening of the book-build follows on the 4th of November at 9:00 AM. A “Revised Pricing Guidance” is released as “necessary during the Book-build”.
On Thursday, 5th November is 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 continued.
Finally, the Bank of Ghana pronounced that the Issuance and settlement date of the 2-Year Ghana cedi denominated Treasury bond by the Republic of Ghana will take effect on Monday, November 9, 2020.
The Bank of Ghana 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.
It should be noted that the November 2020 2-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,” the Bank of Ghana added.
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