The government received a little more than $1.08 billion from the sale of a 2-year bond issued on February 10, 2022.
This comes just a few days after Moody’s downgraded Ghana’s creditworthiness to junk status.
According to the auction results, the government accepted all bids totaling 1.082 billion from investors, both foreign and non-resident.
The yield or interest yield on the 2-year debt instrument, on the other hand, was 19.75 percent. This was at the top of the Initial Pricing Guidance range.
Analysts, on the other hand, believe the bond’s cost was favorable.
It is unclear whether the recent downgrade of Ghana’s credit rating by Moody’s and Fitch had any impact on the sale of the debt instrument.
However, based on the trading results, the impact may not have been significant.
The proceeds from the bond’s sale will be used primarily to finance maturing debt.
Absa, Black Star Advisors, Cal Bank, Databank, Ecobank, Fidelity, GCB Bank, IC Securities, and Stanbic Bank worked together as joint book runners.
The medium to long-term treasury market has seen mixed results.
Rates on 2-year and 5-year bonds increased to 19.75 percent and 21.00 percent, respectively, in December 2021, from 18.50 percent and 19.85 percent, respectively, while rates on 3-year, 6-year, 7-year, and 10-year bonds declined broadly.
The rates on 15-year and 20-year bonds, on the other hand, remained unchanged over the same time period, at 19.75 percent and 20.20 percent, respectively.
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SOURCE: myjoyonline
