[ 2015-12-01 ]

5-year cedi bond slightly oversubscribed
Government has successfully issued its 5 year cedi
denominated Treasury bond.

Government was looking to raise about 516.5
million cedis but received a subscription of about
644 million cedis.

It however accepted 35 out of a total of 47 bids
received which culminated to over 516 million
cedis.

The subscription was 127.5 million cedis more than
the expected.

This represented a subscription ratio of 1.25
times higher than the expected number of bids.

The bond which matures on November 23, 2020 was
issued at a rate of 24 percent.

Meanwhile some analysts who have been speaking to
Citi Business News say fiscal discipline by the
government will largely help it meet its target of
reducing the country’s debts as it borrows from
the domestic market.

“I like what the government is doing towards
that (long term domestic market) but the fiscal
discipline needs to be improved.” Chief
Executive of Databank Group, Kojo Addae-Mensah
said.


Kojo Addae-Mensah however commended government for
shifting attention to long term bonds on the
domestic market.

“At least they are looking at long term
borrowing now that is a positive sign. They are
not crowding out the short term market anymore so
the idea is to refinance the short term market and
refinance it with the long term. I like the
signal, the positive of it, and the fact that it
is five years. It is good I wish they will do more
of the long term bonds than go out for Euro bonds
and the like.” He stated.

It is still unclear how government intends to
spend the amount it has so far realized.

Source - Citifmonline

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